What is the definition of a simple interest rate?

Answer A simple interest rate is interest applied only to the principal amount of the loan. Simple interest rate is multiplied by the original loan amount to calculate the amount of interest due. If the s... Read More »

Top Q&A For: What is the definition of a simple interest rate

What is the definition of interest rate?

An interest rate is the fee charged to a consumer for the use of money procured through a loan product. It is agreed upon at the start of the loan and is charged throughout the life of the loan.Sig... Read More »

Prevailing Interest Rate Definition?

In any given market, money is lent out in several forms at an interest rate meant to compensate the lender for the amount of money and length of time borrowed. If observed side-by-side, similar loa... Read More »

The Definition of Interest Rate Derivatives?

To understand interest rate derivatives, you need to have a basic understanding of derivatives and the concept of underlying assets. The concept is not too difficult to understand once you strip aw... Read More »

The Definition of a Long-Term Interest Rate?

The U.S. Treasury, which sets the benchmarks for loans in the U.S., defines a long-term interest rate as any loan or bond with a maturity of 10 years or more.