Question

What are interest rates

Answer 1

Answer:

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Explanation:

Interest is the amount of money that lenders earn when they make a loan that the borrower repays, and the interest rate is the percentage of the loan amount that the lender charges to lend money. Conversely, higher interest rates mean that consumers don't have as much disposable income and must cut back on spending.

Answer 2

Answer:

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed.

Explanation:

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

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