2007-02-03 19:37:48 · 3 answers · asked by reza m 1 in Society & Culture ➔ Languages
People have been explaining the concept of interest rate in the context of saving money. Most of the time it has to do with borrowing money, as more people tend to be in debt and owe money, rather than have it in the bank earning interest.
Interest rate is a percentage of the amount you borrowed that you pay per year over and above the amount of the loan. If you buy a car, you will probably have to borrow money to do so. They charge you a set amount of interest (say 10% to make the math easy). If you borrowed $5000, 10% of that is $500. If you paid it back in one year you would pay back the original $5000 loan plus the $500 interest for a total of $5500.
2007-02-04 21:49:17 · answer #1 · answered by Jeannie 7 · 0⤊ 1⤋
Interest(if that is what you are attempting to ask about) is the rate at which any kind of savings or investments increase in money over a period of time. For instance., if you get a bank account, that money you have saved will slowly increase over time.
2007-02-04 03:43:25 · answer #2 · answered by some guy 3 · 0⤊ 0⤋
Interest rate is the % of your $ that is added to your account.
2007-02-04 03:44:27 · answer #3 · answered by bevmoonshine 2 · 0⤊ 0⤋