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WordNet-Online
Definitions from WordNet
Noun interest rate has 1 sense
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Definitions from the WebInterest RateDefinition: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. Senses:Sense 1: General definitionIn 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 contextIn 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. Usages:Usage 1: BorrowingWhen 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: InvestingInvestors 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. Related Products:Explore related products on Amazon: | ||||||
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