Why does interest in money exist?

Question

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

Answer 1

Lots of good replies here but the one thing that seems to be missing is the fact that the money needed to pay the interest does not actually exist. It is tacked on to the principal which is the only money loaned out. How do you get the money needed to pay the interest? It’s a mathematical impossibility that keeps all of us in perpetual financial chains.