Last edited 06 Apr 2022

Interest rate

The glossary of statistical terms, published by the Organisation for Economic Co-operation and Development (OECD), defines interest as: ‘…the amount that the debtor becomes liable to pay to the creditor over a given period of time without reducing the amount of principal outstanding, under the terms of the financial instrument agreed between them.’

It defines an interest rate as: ‘…the cost or price of borrowing, or the gain from lending, normally expressed as an annual percentage amount.

[edit] Related articles on Designing Buildings

Designing Buildings Anywhere

Get the Firefox add-on to access 20,000 definitions direct from any website

Find out more Accept cookies and
don't show me this again