Interest rate facts for kids
An interest rate is how much interest is paid by borrowers for the money that they borrow. It is usually a percentage of the sum borrowed. So, a simple 10% interest means that if one borrows £100, one pays back £110.
Interest rates in a country are usually guided by a base rate set by its central bank. The interest rate to businesses and citizens is always above the base rate.
Interest rate Facts for Kids. Kiddle Encyclopedia.