Accountancy, asked by pius61, 11 months ago

what does the word Higher interest rate on average means? ​

Answers

Answered by Amanshrivas
0

Answer:

An interest rate is the percentage of principal charged by the lender for the use of its money. The principal is the amount of money lent. ... They pay interest rates to encourage people to make deposits. Banks charge borrowers a little higher interest rate than they pay depositors so they can profit.

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Answered by gagana927
0

Answer:

interest rate normally calculates on annual basis with respect to the principal and annual percentage.

interest is classified into two types :

simple interest , compound interest.

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