[Kairos]

can someone explain to me how avoidable interest works in laymans terms?

I know its the amount of interest that an organization would have avoided if it had not made the expenditures for an asset but what does that even mean?

i think i understand the calculations somewhat by rote but i need to understand what is going on conceptually.

[vodrldnr]

avoidable interest is ..

let say you borrow money to buy a car. because of the money you borrow only for buying car, you have to pay interest for the borrowing. but if you did not buy car and ride on metro, you could avoid paying the interest.
that interest incurred due to purchase of car is “avoidable interest”.

[Skynet]

Avoidable Interest is when a Marrying couple agrees to a PreNup to prevent any misunderstanding.

[Author]

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