“Rente” is the German word for “interest.” In financial terms, it refers to the cost of borrowing money or the return on investment for deposited funds. Interest is typically expressed as a percentage of the principal amount and can be categorized into various types, such as simple interest and compound interest. Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus any accumulated interest. Interest plays a fundamental role in the economy, influencing savings, investments, and the pricing of loans.
In 2025, Germany will revise the criteria for earning pension points, which are critical for retirement planning. Pension points are awarded based on how an individual's salary compares to the…