Low-interest for Dummies
What does Low-interest really mean?
Hello there! I'm so glad you asked about the meaning of "low-interest." It's really important to understand this term, as it can have a big impact on our everyday lives. So, let's dive in and explore together what "low-interest" really means.
Imagine you have some money that you want to save or borrow. When we talk about "interest," it means the extra money you need to pay back when you borrow money or the extra money you earn when you save money in a bank. It's like a fee or a prize for using someone else's money.
Now, here's where "low-interest" comes into play. When something has a "low-interest" rate, it means that the extra money you have to pay back or earn is not very much. In other words, it's like having a very small fee or a little prize. So, when you borrow money with a "low-interest" rate, you don't have to pay back a lot more than what you received, which is pretty good because it means you'll have more money left for other things.
Let's look at an everyday example to illustrate this better. Imagine you want to buy a toy that costs $100, but you don't have enough money saved up. So, you decide to borrow $100 from your friend. Now, let's say your friend is kind enough to lend you the money with a "low-interest" rate of 5%. This means that when you pay back the money, you'll have to give your friend an extra $5 on top of the $100 you borrowed.
Now, let's imagine another scenario. What if you borrowed $100 from someone else who charged you a "high-interest" rate of 20%? In this case, you'd have to give them an extra $20 when you pay back the money. That's a lot more than just $5!
So, to summarize, "low-interest" means that when you borrow or save money, you don't need to pay back or earn a lot of extra money. It's like having a small fee or a tiny prize compared to borrowing or saving with a "high-interest" rate. Basically, it's a good thing because it means less extra money coming out of your pocket!
I hope that helps you understand what "low-interest" means! Let's keep exploring more words together if you're interested.
Revised and Fact checked by Robert Williams on 2023-10-29 02:27:45
Low-interest In a sentece
Learn how to use Low-interest inside a sentece
- When you borrow money from the bank to buy a car, and the bank charges you very little extra money in return for lending you the money, we can say that you have taken a low-interest car loan.
- If your parents put some money in a special bank account for you, and the bank pays you a small amount of extra money for keeping your money with them, it means you have a low-interest savings account.
- Sometimes people need to buy new things for their homes, like furniture or appliances, but they cannot pay for them all at once. In this case, they might use a credit card that has very low-interest to buy the things they need and pay for them slowly over time.
- When a person wants to start a small business but needs some extra money to do so, they can ask a bank for a low-interest loan to help them get started.
- If someone wants to buy a house but doesn't have enough money saved up, they can apply for a low-interest mortgage from a bank. This way, they can borrow the money to buy the house and pay it back over many years with little extra money added to the loan.
Low-interest Antonyms
Words that have the opposite context of the original word.