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Interest Rate

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Financial Dictionary

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.

Investopedia Commentary

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

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See also: 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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