Interest Rate

An interest rate is the rate at which interest is paid by a borrower (debtor) for the use of money that they borrow from a lender (creditor). Specifically, the interest rate (I/m) is a percent of principal (P) paid a certain amount of times (m) per period (usually quoted per annum). For example, a small company borrows capital from a bank to buy new assets for its business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are normally expressed as a percentage of the principal for a period of one year.
Posts about Interest Rate
  • 3 Things Families Should Know About Student Loans

    … AND the interest rate. The best way to prepare for financing your or your child’s education is to get a clear picture of the big picture – that is, exactly how much money you need and what the repayment terms of the loan or loans will be. Many families take out multiple loans from different providers, both public and private. Each separate loan likely…

    Michael West/ Law Office of Michael West- 29 readers -
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