rente

Rente is a term used in several languages to denote the price of borrowing money, i.e., interest or the interest rate. In Dutch, Danish, Norwegian and Swedish, rente refers to interest charged on loans or earned on deposits. In German, rente primarily means pension or retirement benefits; the related concept of interest is expressed with Zins or Zinsen.

Interest represents the cost of borrowing or the reward for saving. It is usually quoted as an annual percentage rate. With simple interest, the amount owed after time t is A = P(1 + r t). With compounding, interest accrues on previously earned interest, so A = P(1 + r/n)^(n t), where n is the number of compounding periods per year.

Nominal (stated) rente does not adjust for inflation, while real rente reflects purchasing power. The real rate is approximately R_real = R_nominal − inflation. In consumer finance, APR and EAR are common ways to express the cost of credit or return on savings.

Rente levels are determined by a mix of policy rates set by central banks, market expectations, risk premiums, and the term structure of debt. Higher rente generally raises borrowing costs and can encourage saving, while lower rente stimulates lending and investment.

Rente is a central concept in macroeconomics and finance, influencing debt service, investment decisions, exchange rates, and financial markets. Changes in rente interact with inflation, growth, and financial stability, making it a key policy and planning variable for households and firms.