Can somebody please explain the difference between Interest Rate and Rate of Return?

• making money in the stock market
• make money in the stock market
• stock investment
• stock investment strategies

The rate of return is the amount an investment increases over a given period of time. It includes both interest or dividends, as well as increase or decrease in the value of assets. For example, let's assume you buy stock for $1,000. It pays dividends of $50 over the year. You sell the stock at the end of the year for $1,100. The rate is return is ($1,100 + $50) / $1,000. That is 11.5%


Interest is the amount of money you receive for an investment such as a bond. It is payment for an entity using your money. Interest does not consider the increase or decrease in the value of an asset.

Can somebody please explain the difference between Interest Rate and Rate of Return?