Smart Finance

Term

Interest rate

What it costs to borrow money, or what you earn for lending it, expressed as a percentage per year.

In pesos: At 10% a year, $10,000 MXN earns $1,000 in twelve months; at 45%, a credit card charges $4,500 on the same amount.

Where to go deeper

2/4 5 min Read Simple vs. compound interest What compound interest actually is, why time matters more than the amount you start with, and how the same force works against you on a credit card.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.