Implicit interest involves the process of crediting the interest payment directly to a deposit account as opposed to sending an explicit interest check to the customer.

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Implicit interest refers to the cost of borrowing that is not explicitly stated as an interest rate. It is often embedded in the transaction, such as in the case of lease payments or the discount on a note, rather than being credited or paid out as a separate interest payment.

Implicit Interest Involves the Process of Crediting the Interest Payment