your deposits is the interest rate. Similarly, if you demand a loan to buy a car or a computer, you will need to

pay interest on the money you borrow.

Let’s consider the market for borrowing money with credit cards. In 2021, almost 200 million Americans were

cardholders. Credit cards allow you to borrow money from the card's issuer, and pay back the borrowed

amount plus interest, although most allow you a period of time in which you can repay the loan without paying

interest. A typical credit card interest rate ranges from 12% to 18% per year. In May 2021, Americans had

about $807 billion outstanding in credit card debts. As of 2021, just over 45% of American families carried

some credit card debt. Let’s say that, on average, the annual interest rate for credit card borrowing is 15% per

year. Thus, Americans pay tens of billions of dollars every year in interest on their credit cards—plus basic fees

for the credit card or fees for late payments.
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