Interest Rate
Updated 04/29/2024

The interest rate is the amount a lender charges to a borrower and is expressed as a percentage of the principal—the amount lent. The annual percentage rate describes the interest rate on loans (APR). An interest rate can also be used for the amount earned from a savings account or certificate of deposit at a bank or credit union (CD). The income generated on these deposit accounts is the annual percentage yield (APY).

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