Interest Rate

The monthly effective rate paid (or received if you are a creditor) on borrowed money. Expressed as a percentage of the sum borrowed.


Borrowing $1,000 at a 6% interest rate means that you would pay $60 in interest.



Trying To Predict Interest Rates - Understand the various factors that influence them so you can learn to anticipate their movements for profit.

It's In Your Interest - Discover the theoretical relationship between interest rates and stock prices.

What Is Fiscal Policy? - Learn how governments adjust taxes and government spending to moderate the economy.

The Impact of Interest Rates on Real Estate Investment Trusts - REITs are high-yield investments, but do they have an inverse relationship with interest rates? Find out.
Related Terms

Alan Greenspan

Compounding

Creditor

Fixed Interest Rate

FOMC

Interest Rate Ceiling

Interest Rate Swap

Interest Sensitive Stock

Real Interest Rate

Reflation

Variable Interest Rate

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