Percentage is an important category that is widely used in science. It denotes one hundredth (part) of a unit. The main purpose of interest is to determine the proportion of something in relation to the whole. The concept of "percentage" is used in solving problems in which you need to find a fraction of a whole number, the percentage of one number through another, and a number for a given other number and their percentage.
Instructions
Step 1
In economics and finance, interest is a payment to a lender from a borrower for the use of funds or material assets (loan interest). It is a supplement to the loan, a way to reimburse the lender's expenses.
Step 2
The subjects of the relationship associated with the use of interest are the lender and the borrower. Lending interest is not considered a mandatory element of credit relations, but it does not exist outside of credit, since it develops precisely on credit relations.
Step 3
Judgment interest does not arise by chance. Its appearance is due to several reasons: - the lender has free funds or values, which he can refuse to use for some time. Their transfer to the borrower causes some level of risk to arise. Interest is a payment to the lender for the risk that he takes when transferring values to the borrower; - loan interest is closely related to the activities of credit institutions (banks). The bank needs funds for the maintenance of the management apparatus, for the expansion of activities, financing of the social sphere and the formation of profit, which is the difference between the interest on deposits and on loans provided; - the loan interest denies a significant impact on the bank's borrowers. The interest that he pays serves as an incentive for the payment of the loan and the timeliness of settlements.
Step 4
The percentage in quantitative terms is the interest rate. There are several types of rates: - fixed and floating. Fixed rates are negotiated for the entire duration of the contract. They do not depend on changes in the base rate - the average rate of interest at which funds are lent to first-class borrowers. Most loans are issued at a fixed rate. The floating rate changes its level depending on changes in market conditions. As a rule, floating rates are set for long-term loans; - nominal and real. The real rate is the nominal interest rate, reduced by the inflation rate; - market and regulated. Market rates are set based on an analysis of market conditions and market conditions. Regulated rates are regulated by the Central Bank or other institutions.
