You want to put some money in a simple interest account. It pays 6% interest annually for 2 years. You would like to earn $750 in interest. How much money do you need to put in?

Alex wants to borrow $1,000. The local bank says "10% Interest". So to borrow the $1,000 for 1 year will cost:$1,000 * 10% = $100

In this case the "Interest" is $100, and the "Interest Rate" is 10% (but people often say "10% Interest" without saying "Rate")

Of course, Alex will have to pay back the original $1,000 after one year, so this is what happens:

Alex Borrows $1,000, but has to pay back $1,100 This is the idea of Interest ... paying for the use of the money