[This is part of the series: The Complete Guide To Economics 101.]
What are Interest Rates?
Interest Rates are the amount of money paid, or received, in a given period for owners of a given financial asset.
For example, a company may borrow capital from a bank and then owe a certain rate of interest for that use.
Or, a bond owner would have the rights to a certain rate of interest as payment for owning a bond.
Interest rates payments are typically expressed as a percent of the total principal.