An annual rate should not be confused with a monthly rate. Fees and any insurance charges can change the total cost of borrowing.
Interest rate
In a nutshell
An interest rate expresses, as a percentage, the remuneration of a loan or investment over a specified period.
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Explained simply
A practical example
Hypothetical example: CFA 100,000 lent for one year at 5% simple interest earns CFA 5,000 in interest, excluding fees and with no repayments during the year.
Further reading
Source: Banque de France — Interest rates.
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What this means
CFA 100,000 invested for one year earns CFA 5,000 interest before fees and tax.
Educational scenarios. Amounts and rates are fictional, not current market conditions.