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  • 03-09-2017
  • Social Studies
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what is the best definition for the term interest rate?

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  • 03-09-2017
an interest rate is the price a lender charges for loaning money. it is the percent of principal charged by the lender for the use of its money. The principal is the amount of money lent. banks pay you an interest rate on deposits because they borrow that money from you.
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