What Is an Interest Rate?

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Last updated: Nov 8, 2022

Description

If you've ever borrowed money or opened a credit card, chances are, you've paid interest to your lender. Banks are quick to brag about record low interest rates, but does that really matter when you compare it to the cost of a house you want to buy? In this lesson, we're going to talk about what interest rates are and what they actually mean, and why it's so important to understand them before borrowing money.

CEU Credits

Enrolled users will earn 0.1 continuing education units (CEUs) upon completing the course.

Objectives

  1. Learners will be able to describe what an interest rate is.
  2. Learners will be able to recognize the parts of the compound interest formula.
  3. Learners will be able to explain how interest rates can affect the amount of money they pay over time.

Additional Info

Prerequisite Skills

The ability to manage time and work independently on a course, the ability to read content at a sixth-grade level in a digital format (or accessibility tools to assist, like screenreader software)

Course Grading Policy

In order to receive CEU credit for this course you must earn a score of 70% or higher on any quizzes.

Technical Equipment and Skills

  • Equipment: a computer, tablet, or smart phone, access to the internet, headphones (optional)
  • Skills: the ability to navigate a course within a web browser

Disclosure

All content on GIENC should be available at no cost to users. GIENC owns all exclusive rights to the intellectual property on the site. Users may not claim ownership of the product. All employees of GIENC responsible for content on GIENC.org must disclose any proprietary interest they have relevant to the instructional content to users.

Accessibility and Support

This course has been designed to be accessible for all users. It is accessible on both computers and mobile devices like tablets and phones. If you have questions about accessibility, please contact us.

Disclosure

All content on GIENC should be available at no cost to users.

GIENC owns all exclusive rights to the intellectual property on the site. Users may not claim ownership of the product.

All employees of GIENC responsible for content on GIENC.org must disclose any proprietary interest they have relevant to the instructional content to users.

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