Credit is thought to have preceded the existence of coinage by several thousands of years. The first recorded instance of credit is a collection of old Sumerian documents from … See more

• US and Canadian T-Bills (short term Government debt) have a different calculation for interest. Their interest is calculated as (100 − P)/P where P is the price paid. Instead of normalizing it to a year, the interest is prorated by the number of days t: … See more

There are markets for investments (which include the money market, bond market, as well as retail financial institutions like banks) that set See more

In economics, the rate of interest is the price of credit, and it plays the role of the cost of capital. In a free market economy, interest rates are … See more

Simple interest
Simple interest is calculated only on the principal amount, or on that portion of the principal amount that remains. It excludes the effect of compounding. Simple interest can be applied over a time period other than a year, for … See more

Rule of 78s
In the age before electronic computers were widely available, flat rate consumer loans in the United States of America would be priced using the Rule of 78s, or "sum of digits" method. (The sum of the integers from 1 to … See more

Aristotle's view of interest
Aristotle and the Scholastics held that it was unjust to claim payment except in compensation for one's own efforts and sacrifices, and that since money is by its nature sterile, there is no loss in being temporarily … See more