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interest rate

This page is about the collocation interest rate

collocation pattern: noun + noun

Meaning

the percentage of a loan that borrowers must pay back in addition to the amount they borrowed

For example

  • What interest rate does your bank pay to regular account holders?

  • Banks make a profit by paying low interest rates to account holders and charging high interest rates for loans.

Quick Quiz

When you're borrowing money, it's best to pay

a. a low interest rate

b. a high interest rate

c. a really enormous interest rate

Contributor: Matt Errey