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( Interest)
Interest is a fee, paid on borrowed capital. Assets lent include money, shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. The interest is calculated upon the value of the assets in the same manner as upon money. Interest can be thought of as "rent on money". For example, if you want to borrow money from the bank, there is a certain rate you have to pay according to how much you want loaned to you. The fee is compensation to the lender for foregoing other useful investments that could have been made with the loaned money. These foregone investments are known as the opportunity cost. Instead of the lender using the assets directly, they are advanced to the borrower. The borrower then enjoys the benefit of using the assets ahead of the effort required to obtain them, while the lender enjoys the benefit of the fee paid by the borrower for the privilege. The amount lent, or the value of the assets lent, is called the principal. This principal value is held by the borrower on credit. Interest is therefore the price of credit, not the price of money as it is commonly - and mistakenly - believed to be.[citation needed] The percentage of the principal that is paid as a fee (the interest), over a certain period of time, is called the interest rate. Interest is the price paid for the use of savings over a given period of time. In ancient biblical Israel, it was against the Law of Moses to charge interest on private loans. During the Middle Ages, time was considered to be property of God. Therefore, to charge interest was considered to be commerce with God's property. Also, St. Thomas Aquinas, the leading theologian of the Catholic Church, argued that the charging of interest is wrong because it amounts to "double charging", charging for both the thing and the use of the thing. The church regarded this as a sin of usury; nevertheless, this rule was never strictly obeyed and eroded gradually until it disappeared during the industrial revolution. Interest has often been looked down upon in Islamic civilization as well, and most scholars agree that the Qur'an explicitly forbids the practice. Medieval jurists therefore developed several financial instruments to encourage responsible lending. These instruments sometimes closely resemble interest, leading some to wonder whether they truly satisfy the letter and spirit of the rule.
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Interest Subcategories
Interest Articles
Increased Interest in Natural Products by Terry Christensen
In the past several years there has been an increased interest in natural products, and natural skin care products are no exception. It's the simplest, most basic ingredients that have been the most effective in healing and maintaining healthy skin t...
Discover Post Summer Interest in Herbal Skin Care by Laurel Levine
Ever wonder as this summer's sun bathers put their swimsuits away for the winter, they often take a second look at their exceedingly dry skin? Exposure to high temperatures, sunlight and salty ocean spray can accelerate the rate at which skin looses ...
Interesting Dental Health Facts by I C
It is a widely accepted concept that the more you know about a specific subject the better prepared you are when it comes to providing your knowledge to others in the form of a conversation or discussion, when this knowledge is health-related benefit...
Teeth whitening advice for those interested in cosmetic dentistry by James Moore
People are very much the same, although some things, like their color, can be different. I’m not talking about hair, skin or eye color, but the tooth color. You don’t want to be in the yellow team, do you? I thought so… So, the natural teeth color ca...
Makeup Tips for Shine Control by Jay B.
Do you have an oily complexion? Well, if you do then it can be difficult at times to control the shine of your face caused from excess oil. If you're out in the sun a lot, this makes things even more difficult. Not to worry, there are a couple of ...
Are You Interested In The Hypnotherapist Profession ? by Mike Selvon
A hypnotherapist is someone who is not always taken seriously because of the work they do. However, those who actually study and become hypnotherapists put much time and effort into learning clinical hypnotherapy and their job should be taken serious...
THE TRUTH ABOUT BEING A YOGI; Giving and Forgiving - An Art of Moral Self-Interest by Youngbear Roth, RYT, IAYT
THE TRUTH ABOUT BEING A YOGI; Giving and Forgiving - An Art of Moral Self-Interest By Youngbear Roth, R.Y.T., I.A.Y.T. "…The old avatar looked up, slowly waving his hand in front of my face. He gazed into me, deeper than anyone had eve...
Are you interested in cosmetic dentistry? by Ron Mark
We are living in a world where appearance is extremely important. Our success or failure depends on the impression we make on others and how self confident we are. A beautiful smile is a great asset and modern people do whatever it takes in order to ...
Green Tea's Interesting Affects On Weight Loss by Robert Bell
Losing weight has been a worldwide concern today that many are in search for the most reliable and safest ways of shredding body fats and thereby achieving optimum health and great physical conditions. But since most of the faster commercial ways of ...
If Your Interest is Weight Loss You May Want a Heart Rate Monitor that Can Also Monitor Calorie Burn by Muna wa Wanjiru
Are you one of those people that is totally committed to your personal exercise routine? Or are you a person that enjoys working out in an effort to stay strong and healthy? Whichever type of exercise enthusiast that you might be, ...
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