ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Interest Rate-The cost of borrowing money expressed as a percentage of the amount borrowed (principal). Typically, low-risk borrowers with good credit scores pay the lowest interest rates.

Detailed explanation-2: -The interest rate is the amount a lender charges a borrower and is a percentage of the principal-the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).

Detailed explanation-3: -Interest is the monetary charge for borrowing money-generally expressed as a percentage, such as an annual percentage rate (APR). Interest may be earned by lenders for the use of their funds or paid by borrowers for the use of those funds.

Detailed explanation-4: -The interest rate is the amount lenders charge borrowers and is a percentage of the principal. It is also the amount earned from deposit accounts. Interest is the monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Detailed explanation-5: -Firstly, “Cost of capital” is merely the financing cost the organization must pay when borrowing funds, either by securing a loan or by selling bonds, or equity financing. In either case, the cost of capital appears as an annual interest rate, such as 6%, or 8.2%.