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

It’s the cost of borrowing money. Would you lend out your money if you were going to get nothing in return? Especially since there’s a chance they won’t pay it back. You’re taking risk but getting no reward.