interest rate — the percentage of a loan that is charged as interest to the borrower, typically expressed as an annual percentage
Part of speech: NOUN
Definition: the percentage of a loan that is charged as interest to the borrower, typically expressed as an annual percentage
Pronunciation (IPA): /ˈɪntrəst reɪt/
Example Sentences
- My credit card has a 24% interest rate, which basically means my money goes on a very expensive vacation without me.
- The Federal Reserve's decision to maintain interest rates at near zero has helped borrowers significantly.
- When interest rates are high, my savings account finally feels useful instead of just being a digital piggy bank.
interest rate
NOUN[/ˈɪntrəst reɪt/]
the percentage of a loan that is charged as interest to the borrower, typically expressed as an annual percentage
the percentage of a loan that is charged as interest to the borrower, typically expressed as an annual percentage
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🎤Pronunciation
🌳Etymology
Origin
Interest derives from Latin interesse, meaning 'to be between' or 'to differ', originally referring to the difference between principal and returned amount. Rate comes from Latin rata, meaning 'calculated' or 'fixed', denoting a proportion or fixed amount. Together, the term expresses the calculated difference charged on borrowed money.
Breakdown
interesse (Latin: to be between, differ) + rata (Latin: calculated, fixed) = the calculated proportion or percentage representing the difference charged on a principal amount.
🎵Rhyme
🔗Collocations
📝Examples
“My credit card has a 24% interest rate, which basically means my money goes on a very expensive vacation without me.”
“The Federal Reserve's decision to maintain interest rates at near zero has helped borrowers significantly.”
“When interest rates are high, my savings account finally feels useful instead of just being a digital piggy bank.”
“Economists predict that interest rates will rise gradually over the next two years.”
📚Related Words
Synonyms
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