WHAT ARE INTEREST RATES?
the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage (of the original amount borrowed)
If a person borrowed $100, and after a year, payed back $120 the interest rate paid would be 20% a year, the interest collected by the loaner being $20
So a person could be willing to lend you $100, if you pay 20% interest ;
$100 + $20 = amount w/ interest
20/100 = interest
20% = interest rate
However, if a person lent $100, and the person borrowing the money pays back exactly $100, the loaner would've collected no interest
Essentially. . .
The extra $20, or the interest, would be the fee that the person paid to be able to keep the money borrowed and do whatever they wanted with it
END OF TUTORIAL.