An interest rate is the cost of borrowing money. Or, on the other side of the coin, it is the compensation for the service and risk of lending money. Without it, people would not be willing to lend or even save their cash, both of which require deferring the opportunity to spend in the present. But prevailing interest rates are always changing, and different types of loans offer various interest rates. If you are a lender, a borrower or both, it's important you understand the