Question

Define rate of interest Economics class 10​

Answer 1

Answer:

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.

The annual interest rate is the rate over a period of one year. Other interest rates apply over different periods, such as a month or a day, but they are usually annualised

Answer 2

Answer:

Interest rate is defined as the the proportion of a loan that is charged as the interest to the borrower