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rate of interest
Thesaurus| Noun | 1. |  rate of interest - the percentage of a sum of money charged for its useinterest ratebank discount, discount, discount rate - interest on an annual basis deducted in advance on a loandiscount rate - the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve Systembase rate - the interest rate set by the Bank of England for lending to other banksprime interest rate - the interest rate on short-term loans that banks charge their commercial customers with high credit ratingsusury, vigorish - an exorbitant or unlawful rate of interestcharge per unit, rate - amount of a charge or payment relative to some basis; "a 10-minute phone call at that rate would cost $5" |
EncyclopediaSeeinterestrate of interest
Rate of interestThe rate, as a proportion of the principal, at which interest is computed.Interest RateThe percentage of the value of a balance or debt that one pays or is paid each time period. For example, if one holds a bond with a face value of $1,000 and a 3% interest rate payable each quarter, one receives $30 each quarter. The percentage of the interest rate remains constant (usually), but the amount one pays or is paid changes according to the amount of the balance or debt. For example, if one pays off part of the principal on a loan each month, the amount one pays in interest decreases even though the rate remains the same. See also: Time Value of Money.rate of interest see INTEREST RATE.rate of interest see INTEREST RATE.See ROI
See ROIrate of interest
Related to rate of interest: effective rate of interest, Nominal Rate of InterestSynonyms for rate of interestnoun the percentage of a sum of money charged for its useSynonymsRelated Words- bank discount
- discount
- discount rate
- base rate
- prime interest rate
- usury
- vigorish
- charge per unit
- rate
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