What is an interest rate?


A. A loan add-on.****
B. A required bank fee.
C. A service provided by a retail store.
D. A special type of price.

Thank you :D

An interest rate is a special type of price that is charged by a lender to a borrower for the use of borrowed money. It is expressed as a percentage and is typically calculated on an annual basis, although it can also be calculated for shorter or longer time periods.

To understand interest rates, it's important to first understand the concept of borrowing. When a person or organization needs money, they can borrow it from a lender, such as a bank, credit union, or financial institution. The lender agrees to provide the money to the borrower, who agrees to repay the money over a certain period of time, usually with an additional amount called interest.

The interest rate is the cost of borrowing the money and is determined by a variety of factors, including the level of risk associated with the borrower, the duration of the loan, and prevailing market conditions. The interest rate can be fixed or variable, depending on the terms of the loan agreement.

To find out the interest rate on a loan or credit product, you can look at the terms and conditions provided by the lender. This information is usually available in loan agreements, credit card contracts, or on the lender's website. It's important to carefully review these documents to understand the interest rate, as well as any other fees or charges that may be associated with the borrowing.

In summary, an interest rate is the cost of borrowing money and is expressed as a percentage. It is important to understand the interest rate and associated terms and conditions when considering borrowing money.

Right

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