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**interest rate definition of interest rate at dictionary**: Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the ...Interest Rate Versus Total Interest Payments as Cost Measures: Some loan officers encourage borrowers to view total interest payments, rather than the interest rate, as the measure of cost they seek to minimize. This is a mistake. The lower the interest rate a borrower pays, the better off they are.Although interest rates are very competitive, they aren't the same. A bank will charge higher interest rates if it thinks there's a lower chance the debt will get repaid. For that reason, banks will always assign a higher interest rate to revolving loans, like credit cards. These types of loans are more expensive to manage.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.Interest rate example. Unless a buyer are paying cash for a home, he or likely will take out a sizable loan for a new residence. When the bank offers the loan to the buyer, it will included a ...Interest definition is - a feeling that accompanies or causes special attention to something or someone : concern. How to use interest in a sentence. ... Interest rates are some of the most powerful and influential components of an economy. As a result, most countries take a keen interest, if not an active role, ...Interest The price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property. Interest Money that is paid in exchange for borrowing or using another person's or organization's money. Interest is calculated as a ...Related WordsSynonymsLegend: Switch to new thesaurus Noun 1. interest rate - the percentage of a sum of money charged for its use rate of interest bank discount, discount, discount rate - interest on an annual basis deducted in advance on a loan discount rate - the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve ...Rate of interest definition is - the percentage usually on an annual basis that is paid by the borrower to the lender for a loan of money.Interest is the charge for the privilege of borrowing money, typically expressed as annual percentage rate . Interest can also refer to the amount of ownership a stockholder has in a company ...

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A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve Board policies ...Theoretically, nominal interest rates could be harmful, which would imply that lenders would pay borrowers for the privilege of lending money to them. In practice, this is unlikely to happen, but on occasion, we do see real interest rates (that is, interest rates adjusted for inflation) go below zero.Interest definition, the feeling of a person whose attention, concern, or curiosity is particularly engaged by something: She has a great interest in the poetry of Donne. See more.Interest rate definition: The interest rate is the amount of interest that must be paid . It is expressed as a... | Meaning, pronunciation, translations and examplesinterest rate definition: 1. the interest percent that a bank or other financial company charges you when you borrow money, or the interest percent it pays you when you keep money in an account: 2. the percentage amount that you pay for borrowing money, or get for lending money, for a period of time…. Learn more.

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