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

If you need money, then you need to convince me to give it to you. One way is by promising to pay me back plus an additional amount. That additional amount is the lender’s “interest” in the loan.

If I don’t know or care about you then the only reason for me to give you money is if I develop an interest in the loan.