1: The total price paid for the use of credit or money, especially for a loan. Capital and Interest is a calculation showing the total cost to use a loan to purchase a product or asset, such as a home. The borrower pays an amount each month to cover the amount borrowed (or capital or principal) plus the interest charged on capital. EXAMPLE: The capital and interest for our new dump truck comes to a total of $90,000.
2: A stock of resources that may be employed in the production of goods and services. EXAMPLE: We have 2 tons of steel available as capital to produce the bolts.
