The interest rate is the amount of interest that must be paid. It is expressed as a percentage of the amount that is borrowed or gained as profit. The Finance Minister has renewed his call for lower interest rates. the percentage amount charged by a bank etc when you borrow money or paid to you by a bank when you keep money in an account there
The rate of interest charged for the use of money, usually expressed as an annual rate The rate is derived by dividing the amount of interest by the amount of principal borrowed For example, if a bank charged $50 a year to borrow $1,000, the interest rate would be 5% Interest rates are quoted on bills, notes, bonds, credit cards and many kinds of consumer and business loans Rates in general tend to rise with inflation and in response to the Federal Reserve raising key short-term rates A rise in interest rates has a negative effect on the stock market because investors can get more competitive returns from buying newly issued bonds instead of stocks It also hurts the secondary market for bonds because rates look less attractive compared to newer issues See "How Bonds Behave " BACK TO TOP
the method by which a lender charges for the use of loan proceeds and is expressed as a percentage of the loan amount The interest rate is usually the sum of a selected index rate and a spread
Credit is not free! When you use money provided by a bank or financial institution, the interest rate reflects the amount the organization charges for that service
Interest charges generally accrued as a percentage of the amount borrowed The interest rate is usually quoted in percent per year (Interest is the amount lenders charge you to use their money )
Interest Rate The rate of return the lender receives for permitting the borrower to use the mortgage money for a specified term The interest rate is usually expressed as an annual percentage rate, calculated semi-annually, not in advance
The percentage of loan amount borrowed which is charged by the lender for use of the money Interest rates are usually expressed as the percentage per year
The rate charged the borrower each period, by custom quoted on an annual basis A rate of 6%, for example, means a rate of 1/2% per month For a monthly payment mortgage the rate divided by 12 is multiplied by the balance at the end of the preceding month to determine the monthly interest due
The fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal; the rate is dependent upon the time value of money, the credit risk of the borrower and the inflation rate Interest rates can be calculated as simple, compounded or effective