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interest rate


Definitions from WordNet

Noun interest rate has 1 sense
  1. interest rate, rate of interest - the percentage of a sum of money charged for its use
    --1 is a kind of rate, charge per unit
    --1 has particulars:
     discount rate, discount, bank discount; discount rate; base rate; prime interest rate; usury, vigorish

Definitions from the Web

Interest Rate


The interest rate refers to the percentage of the principal amount that a lender charges as interest on a loan or credit. It represents the cost of borrowing money or the return on investment for lenders.


Sense 1: General definition

In finance, an interest rate is the cost of borrowing money, typically expressed as an annual percentage. It can be fixed or variable depending on the terms of the loan or credit.

For example: The bank offers a competitive interest rate for their mortgage products.

Sense 2: Local context

In the local context, the interest rate can refer to the rate of interest paid on savings accounts or offered by local lending institutions within a specific region or area.

For example: The local credit union provides high-interest rates on their savings accounts.


Usage 1: Borrowing

When borrowing money, individuals or businesses often take into consideration the interest rate to determine the total amount to be paid back over time.

For example: The company applied for a loan with a low-interest rate to minimize their repayment costs.

Usage 2: Investing

Investors consider the interest rate as a factor when deciding where to allocate their funds or make investment choices.

For example: The investor chose a high-yield bond with an attractive interest rate.

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