Interest rate refers to the percentage at which borrowers are charged for borrowing money or lenders are rewarded for lending money. It is the cost of borrowing or the return on investment. Interest rates are typically expressed as an annual percentage rate (APR) and can vary depending on various factors, including the borrower's creditworthiness, the type of loan or investment, and prevailing market conditions. Higher interest rates generally make borrowing more expensive and saving more rewarding, while lower interest rates stimulate borrowing and economic growth.
