What is Interest rate?
Money & central banksThe price of borrowing money, shown as a percentage per year. For savers, it is the reward for lending.
Think of it like: Rent you pay for using someone else's money.
Real example: Borrow $20,000 for one year at 8% and you pay back $21,600: the extra $1,600 is the interest.
Lesson: The price of borrowing money Practise it now: Carry Trade Caravan