Interest rate
percentage of a sum of money charged for its use
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An interest rate is how much interest is paid by borrowers for the money that they borrow. It is usually a percentage of the sum borrowed. So, a simple 10% interest means that if one borrows $100, one pays back $110.
Interest rates in a country are usually guided by a base rate set by its central bank. The interest rate to businesses and citizens is always above the base rate .
