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Interest Rate - Definition
Below, you'll find a definition of this investing term...

Definition: The amount of money in percent that a borrower pays to borrow money.  For example, if a $100,000 loan has a 5% interest rate, the borrower will have to pay $5,000 each year until the money is paid back.

TeenAnalyst Advice: The goal for investors is to earn the highest interest rate possible without sacrificing any security.

 

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