Interest rate

From Wikipedia, the free encyclopedia
Jump to: navigation, search

An interest rate is how much interest is paid by borrowers for the money that they borrow. It is usually a percentage of the sum borrowed. So, a simple 10% interest means that if one borrows £100, one pays back £110.

Interest rates in a country are usually guided by a base rate set by its central bank. The interest rate to businesses and citizens is always above the base rate .