2007-04-14 13:09:10 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Interest is paid and charged by financial institutions.
They charge an interest rate when they lend money to someone.
The pay an interest to someone that deposits their money in the institution.
The institution makes money by lending out at a higher rate then they pay.
The interest rates flucutate based on the economy, the borrowers credit rate and the depositors standing.
For more, take a personal finance course or an economics course.
Good Luck!
2007-04-14 15:52:45 · answer #1 · answered by JJ 5 · 1⤊ 1⤋
Interest rates are percentages that affect your account. You can make money with it and its also the rate at which you pay something back. Its on all loans, credit cards and Bank accounts.
2007-04-19 12:06:12 · answer #2 · answered by Pepper 6 · 0⤊ 0⤋
reported for an inappropriate name above poster.
2007-04-14 20:20:57 · answer #3 · answered by rurouni33569 4 · 0⤊ 1⤋