# Periodic Rate

Definition

• The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day.

Synonyms
repeated, interest rate, periodic interest rate, regular

## Related Terms and Acronyms

• Compounding Method Definition,
• Used in Bank rate tables. These include: S--Simple interest. A--Compounded annually. H--Compounded semi-annually. Q--Compounded quarterly. M--Compounded monthly. D--Compounded daily.
• Interest (IN, int) Acronym & Abbreviation,
• Money paid for the use of borrowed funds, usually expressed as an annual percentage.
Bank account transaction code.
• Interest Factor Definition,
• The decimal equivalent for an interest rate on a unit amount for a period of time. Computed by interest rate divided by number of days in a basic year times the number of days accrued.
• Interest Rate (IR) Acronym, Very Important,
• The rate a lender charges an individual to borrow money.
• Monthly Periodic Rate Definition,
• The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12.
• Per Diem Interest Definition,
• Interest that is charged daily; usually refers to the partial month's interest that the buyer pays on the mortgage covering the period from the day of closing to the end of the month.
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