Interest Rate
The percentage charged for borrowing or earned on savings over a stated period.
The rate is one of four things that set an interest payment, along with the amount saved, the type of vehicle, and conditions in the wider economy.
Often confused with
- Interest
- Interest is the dollar amount; the interest rate is the percentage that produces it.
Taught in
See also
3.1.A.3 · 3.2.A.2