Talk:Interest rate

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 Definition The difference between the present and future value of money, expressed as a percentage of current value. [d] [e]
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Anthony Argyriou 21:16, 9 May 2007 (CDT)

Candidate for blanking?

In my opinion this article should not be allowed to stand in its present form. The statement "In most transactions, interest is charged over time at a uniform rate" is untrue; the passage "for example, the sum of money a borrower owes a lender might increase t 1% per month, thus the interest rate is 1% per month" is clumsy and unhelpful; and the rest of the article adds little to the opening definition.

I do not recommend deletion because I can envisage the possibility of a useful article article on the subject of "interest" (or, preferably, on "interest rate"). The minimum that is needed is, in my opinion:

  • an explanation of the concept that relates it to the opportunity cost and social time preference rates (see discount rate),
  • a reference to the risk premium with examples, and
  • an account of some of the better-known categories of fixed-interest and variable-interest contracts with examples.

The interest rate algebra should be moved to a subpage - and perhaps extended, and some links to providers of interest rate information would be useful.

Until somebody can spare the time for the necessary rewrite, I recommend blanking. Nick Gardner 10:06, 21 January 2010 (UTC)

I have moved the page to the preferred "interest rate" and reduced it to the lead sentence. --Peter Schmitt 17:04, 22 January 2010 (UTC)