interest rate
DefinitionA 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 policies. For example, if a lender (such as a bank) charges a customer $90 in a year on a loan of $1000, then the interest rate would be 90/1000 *100% = 9%.
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interest rate is ...
... part of the Lending & Credit subject.
... part of the Lending & Credit subject.
... #36 on our list of the most popular terms.
Related Terms
Federal funds rate, average weighted maturity, Bank Rate, barometer, indicator, basis point, benchmark interest rate, broker loan rate, cap, ceiling and
interest rate appears in these other terms
interest rate option, interest rate futures, covered interest rate arbitrage
interest rate appears in the definitions of these other terms on BusinessDictionary.com
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