Interest Rate
The percentage which, when multiplied by the face amount or principalThe amount of money you borrowed or deposited, excluding any accumulated interest. Some examples include:
• Credit cards: The amount of purchases you have made but not paid on your credit card ... More of a financial instrumentAny investment that you purchase. Examples include an exchange-traded fund, a mutual fund, stock in an individual company, a bond and a money market fund. There are also many more complex financia... More, such as a bondA form of debt issued by government entities and corporations. More, savings account or loan, determines the amount of interestA charge for borrowing money, most often based on a percentage of the amount owed. More that will be paid to or by the counterpartyThe other person involved in a financial transaction. Examples of counterparties include the bank issuing your mortgage, the bank at which you have your checking and savings accounts or the company is... More. InterestA charge for borrowing money, most often based on a percentage of the amount owed. More rates are generally stated before consideration of the impact of any compounding.
I am also a retired property-casualty actuaryA professional who assesses and manages the risks of financial investments, insurance policies and other potentially risky ventures. Source: www.investopedia.com/terms/a/actuary.asp More (someone who works with the math and statistics related to insurance). I spent a significant portion of my career building statistical models of all of the financial risks of an insurance company and interpreting their findings to help senior management make better financial decisions. I retired in my late 50’s, which one of my daughter’s friends thought clearly qualified me to write this blog. Read more about Susie Q