##### Interest Rate Meaning In
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interest rate meaning in : Interest is essentially a rental or leasing charge to the borrower for the use of an asset. In the case of a large asset, such as a vehicle or building, the lease rate may serve as the interest rate.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.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 ...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.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 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.Interest rate definition at Dictionary.com, a free online dictionary with pronunciation, synonyms and translation. Look it up now!The effective annual interest rate is the interest rate that is actually earned or paid on an investment, loan or other financial product due to the result of compounding over a given time period.Interest rate definition: The interest rate is the amount of interest that must be paid . It is expressed as a... | Meaning, pronunciation, translations and examples ... The interest rate is the amount of interest that must be paid on a loan or investment, expressed as a percentage of the amount that is borrowed or gained as profit.
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