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Interest rate

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.46 sec.
Interest rate
The monthly effective interest rate. For example, the periodic rate on a credit card with an 18% annual percentage rate is 1.5% per month.

Interest rate. Interest rate is the percentage of the face value of a bond or the balance in a deposit account that you receive as income on your investment.

If you multiply the interest rate by the face value or balance, you find the annual amount you receive.

For example, if you buy a bond with a face value of $1,000 with a 6% interest rate, you'll receive $60 a year. Similarly, the percentage of principal you pay for the use of borrowed money is the loan's interest rate.

If there are no other costs associated with borrowing the money, the interest rate is the same as the annual percentage rate (APR).



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With economists projecting several interest rate hikes through 2006, financial advisers say now is the time for borrowers to take a second look at the loan terms of adjustable-rate mortgages.
87 percent interest rate and a loan-to-value of 61 percent.
Although credit risk is likely to remain the dominant risk to banks, technological advances and the emergence of new financial products have provided them with dramatically more efficient ways of increasing or decreasing interest rate and other market risks.
 
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