Rate of Interest

Posted in Finance, Accounting and Economics Terms, Total Reads: 722

Definition: Rate of Interest

The rate of interest is the rate at which the interest is charged on the amount borrowed by a person/institution. Each lender charges an interest as a compensation for lending their money to someone else and losing the use of the money for that time period.

Example: Rate of Interest for Fixed Income deposits is 9%. It means if a person deposits Rs 100 in the fixed deposit, he/she will get an interest of Rs.9.


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