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Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.
For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed, or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower.
Interest differs from profit, in that interest is received by a lender, whereas profit is received by the owner of an asset, investment or enterprise. Interest may be part or the whole of the profit on an investment, but the two concepts are distinct from each other from an accounting perspective.
The rate of interest is equal to the interest amount paid or received over a particular period divided by in principal sum borrowed or lent usually expressed as a percentage.
Compound interest means that interest is earned on prior interest in addition to the principal. Due to compounding, the total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e. In practice, interest is most often calculated on a daily, monthly, or yearly basis, and its impact is influenced greatly by its compounding rate.
- Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest It is the result of
- interest COI is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could
- An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed called the principal sum The total
- In property law and real estate, a future interest is a legal right to property ownership that does not include the right to present possession or enjoyment
- Interest rate parity is a no - arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available
- The Interest Tax Act, 1974 was an Act that imposed a special tax on interest accrued in specified cases. The Act applied to the whole of India, including
- A community of interest or interest - based community, is a community of people who share a common interest or passion. These people exchange ideas and
- public interest is the welfare or well - being of the general public and society. Economist Lok Sang Ho in his Public Policy and the Public Interest argues
- Self - interest generally refers to a focus on the needs or desires interests of one s self. Most times, actions that display self - interest are often performed
- A point of interest or POI, is a specific point location that someone may find useful or interesting. An example is a point on the Earth representing
- A Site of Special Scientific Interest SSSI in Great Britain or an Area of Special Scientific Interest ASSI in the Isle of Man and Northern Ireland
- population. There are two types of female interest channels: general interest and niche interest General interest women s channels are television channels
- Interest is a feeling or emotion that causes attention to focus on an object, event, or process. In contemporary psychology of interest the term is used
- An interest - only loan is a loan in which the borrower pays only the interest for some or all of the term, with the principal balance unchanged during
- An interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds
- Government interest is a concept in law that allows the government to regulate a given matter. Under the Supreme Court of the United States s constitutional
- that brings about interest sympathy or motivation in the reader or viewer. Human - interest stories are a type of soft news. Human - interest stories may be
- Public interest law loosely, refers to legal practices undertaken to help poor or marginalized people, or to effect change in social policies in the public
- In accounting, minority interest or non - controlling interest is the portion of a subsidiary corporation s stock that is not owned by the parent corporation
- The American Interest AI is a bimonthly magazine focusing primarily on foreign policy, international affairs, global economics, and military matters
- An interest group or advocacy group is a body which uses various forms of advocacy in order to influence public opinion and or policy. Interest group may
- A Special Interest Group SIG is a community within a larger organization with a shared interest in advancing a specific area of knowledge, learning
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Pino - logical board game which is based on tactics and strategy. In general this is a remix of chess, checkers and corners. The game develops imagination, concentration, teaches how to solve tasks, plan their own actions and of course to think logically. It does not matter how much pieces you have, the main thing is how they are placement!online intellectual game →