The interest rate
Example: Interest rate determines cost of borrowing money over a period
Definition
"The interest rate" in finance refers to the percentage charged or earned on a sum of money over a specific period. It determines the cost of borrowing money or the return on investment, influencing financial decisions and economic activity.
Etymology
The term "the interest rate" combines 'interest,' originating from Latin 'interesse,' meaning 'to be between' or 'to matter,' with 'rate,' derived from the Latin 'rata,' meaning calculated or fixed amount. Together, they describe the fixed percentage that matters in financial transactions. Did you know the concept of charging interest dates back to ancient Mesopotamia?
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"The interest rate" appears in the Vocaplus list "English - Finance - (A1-C2) - set 1", containing 150 commonly used words.
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