What is Interest rate?
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 . {{Central banks}} {{stub}} [[Category:Finance]]