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    In·ter·est rate

    noun

    • 1. the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding: "reduced interest rates encourage people to spend money on home improvements"

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  3. Feb 23, 2024 · Learn what interest rates are, how they are calculated, and how they affect borrowers and lenders. Find out the difference between simple and compound interest, and the factors that influence interest rates.

  4. Jan 29, 2022 · An interest rate is the percentage of principal charged by the lender for the use of its money. It affects the cost of loans and the economy. Learn how interest rates are determined, how to compare APR and interest rates, and the impact of high and low-interest rates.

    • Kimberly Amadeo
  5. Jun 7, 2021 · An interest rate is the cost you’re charged for borrowing money or the payment you receive for depositing or lending money. It dictates how much someone will pay to borrow money from you or how much you will pay to borrow it from someone else. Learn how interest rates are determined, how to earn interest, and how to compare APR and APY.

  6. An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum ). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed.

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