LeoGlossary: Interest Rate

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The rate which an individual or financial institution charges or earns over a period of time. This is as a result either borrowing or lending. It also applies to investing.

There are many types of assets which interest can be applied. The key is an agreed intrinsic value. In addition to money, we see it apply to cars, homes, boats, and cryptocurrency.

When people take out credit, regardless of the purpose, they are charged interest. This is expressed as a rate on an annual basis (APR).

In this situation, we see lenders benefit since the interest earned is paid to them on the money lent.


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