The interest rate is a percentage of the principal borrowed, which is then usually paid by the borrower to the lender over time. Note this is above and beyond the principal so that the total payback is principal plus interest.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Is It Time to Buy Parker-Hannifin Corporation Stock?
- Big Oil and Renewables: Not So Strange Bedfellows
- Facebook vs. Twitter: Which Is the Better Social-Media Investment?
- 1 Dividend Stock for Retirees to Buy
- 20 Stocks With Monthly Dividends: ARMOUR Residential REIT
- Realty Income Corp.: Why This High-Yielding Dividend Stock Is for Everyone