Education Focus
How Are ABN LeverageLine Interest Rates Determined?
What is an interest rate? According to Investopedia, an interest rate is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. How are interest rates applied? Interest rates apply to most lending or borrowing transactions. Individuals borrow money to purchase homes, fund projects, launch or fund businesses, or pay for college tuition. Businesses take out loans to fund capital projects and expand their