What is it for and why? I found a lot of questions on interest rate but not what interest itself is
Thanks in advance 🙂
Edit: Thank you for all the replies i am now a financial god of wisdom, i’m not going to reply to unless something is unclear to me but comments will all be read
In: 9
Why would I lend you money? If you just promise to pay me back then I’ll be missing out on money now only to end up in the situation I was already in before I gave it to you. (Actually worse if you take inflation into account). And actually you might not even pay me back at all, what if you die? What if you can’t pay it back?
Now if you said you’d pay me back + extra now I actually have an **interest** in giving it to you.
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