Interest
Interest is payment made for the use of another person's money; in , it is regarded more as a payment made for capital. also consider interest as the reward for thrift; that is, payment offered to people to encourage them to save and to make their savings to others.

Interest is usually paid only on the , that is, on the of money loaned, and it is called simple interest. In some cases, interest is paid not only on the but also on the cumulative total of past interest payments. This is known as the interest, and the amount so paid is called interest. The rate of interest is expressed as a of the paid for its use for a given time, usually a year. Thus, a loan of $100 at 10 per annum earns interest of $10 a year. The current, or market, rate of interest is determined by the relation between the supply of money and the demands of borrowers. When the supply of money for increases faster than the of borrowers, interest rates tend to fall. , interest rates generally rise when the demand for grows faster than the supply of to meet that demand. Business executives will not borrow money at an interest rate that the return they expect the use of the money to yield.

During the Middle Ages and before, the payment and receiving of interest was questioned on moral grounds. The position of the Christian church, as by the Italian theologian Thomas Aquinas, condoned interest on loans for business purposes, because the money was used to produce new wealth, but adjudged it sinful to pay or receive interest on loans made for of goods. Under modern capitalism, the payment of interest for all types of loans is considered proper and even desirable because interest charges serve as a means to the limited for loan to in which they will be most profitable and most productive. are protected from loans at excessive interest rates. In the U.S., some states have statutes providing ceilings on interest.