An interest rate is the percentage of a loan or amount of money that is charged or received as interest over a certain period of time. It is the cost of borrowing money or the return on investment. Interest rates are typically expressed as an annual percentage, and they can be fixed (remaining the same throughout the loan term) or variable (changing over time). The interest rate is used to calculate the amount of interest payable on a loan or the amount of interest earned on an investment. It is an important factor in determining the cost of credit and the potential return on investment.
