How Do Interest Rates Work?

By Investment U Research Team If you’re buying your first home or getting ready to invest in securities for the first time, you probably have a lot of questions. The first and most important should be: “how do interest rates work?” This is an invaluable first question to ask because it’ll govern how you look at your investment—whether you’re taking on new debt or calculating ROI.
The fact is, interest rates are the defining variable controlling investments. Even more important than time, interest rates dictate what you can expect to gain from an equity or owe to a debt. But they’re not just a number—they …read more

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