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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.
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See Interest Rate.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
where P ([V.sub.i],[T.sub.j]) is the risk rate of overflow caused by the rainfall in the later period, when the storage capacity of the ponds is Vi.
In the West Midlands, the programme said the most dangerous road is the A53 Leek-Buxton which had a risk rate 118.03.
EuroRAP say the average risk rate for A roads is 53.04, while the average for motorways is 11.06.
Owners who refuse assistance will no longer be eligible for subsidized flood insurance far below the actuarial risk rate they should be paying.
Although the coverage would cost as much as three times the standard risk rate (depending on annual income), some of that price would be offset by assessing those with insurance about $3 a year.