rate of interest

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Rate of interest

The rate, as a proportion of the principal, at which interest is computed.

Interest Rate

The percentage of the value of a balance or debt that one pays or is paid each time period. For example, if one holds a bond with a face value of $1,000 and a 3% interest rate payable each quarter, one receives $30 each quarter. The percentage of the interest rate remains constant (usually), but the amount one pays or is paid changes according to the amount of the balance or debt. For example, if one pays off part of the principal on a loan each month, the amount one pays in interest decreases even though the rate remains the same. See also: Time Value of Money.

rate of interest


rate of interest

References in periodicals archive ?
Policies can effectively change the relative demand for safe assets--which, in the context of the authors' model, would bring down the estimate of the natural rate of interest.
In contrast, other research has focused on shortterm fluctuations in the natural rate of interest, assuming the longer-run value is constant [Neiss and Nelson 2003; Woodford 2003; Andres, Lopez-Salido, and Nelson 2009; Barsky and others 2014; Curdia and others 2015; Goldby, Laureys, and Reinold 2015], These studies define the natural rate to be the real interest rate that would prevail if all prices were flexible.
1), it is next determined, via t-statistic, if there was a statistically significant change either in the real rate of interest Proxy or the measured rate of inflation proxy for the expected rate of inflation.
The specification led to an inverse relation between the short-term market rate of interest and the quantity of money demanded, and to a positive relation between the level of nominal income and the quantity of money demanded.
In this essay, I focus instead on the empirical evidence regarding changes in the normal, or "natural," rate of interest over the past few decades with a particular focus on the period since the Great Recession.
In accordance with the terms of the prospectus dated 19 December 1986, the Bank of England said that the rate of interest payable on the 2 1/2% Index-linked Treasury Stock 2024 for the interest payment due on 17 July 2015 will be GBP3.
As far as trend of rate of interest in Pakistani, The history of rate of interest in Pakistan reveals that it was highest (20%) in October 1996 during the period 1992-2012 while it was lowest in November 2002; 7 percent.
Earlier the rate of interest was eight percent to nine percent, which had gone up to 12 percent to 13 percent.
The Department of Financial Services has set the rate of interest payable on judgments and decrees for 2006 at 9 percent per annum or .
The rate of interest on under- and overpayments should equal the applicable federal rate plus no more than two or three percentage points.
It is very common for mortgage documents to provide that if it is determined that the interest rate is usurious, that amount which exceeds the legal rate of interest will not be deemed interest, but will be considered to be a payment toward reducing the principal of the mortgage.
When we withdrew our accounts from the Alliance and Leicester last year we were getting such a minuscule rate of interest it was hardly worth having at all.