variable rate

variable rate definition - finance
An interest rate, typically one on a loan or credit card agreement, that varies according to whether certain conditions are met. The interest rate is often linked to an index that fluctuates as market conditions change. However, there will be a limit on how high the interest rate can climb.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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