Etymologically, the word interest comes from the Latin term “interesse” and is related to what is found among people, attracting them, captivating them in order that there is an inclination towards it.
Many times people relate to others through a certain interest, when seeking some personal benefit, interest can be born in people when something can cause a benefit, curiosity, learning, when a person watches a movie or reads A book is because it causes interest, because the topic addressed in them are current issues or that in some way generates influence on their personal and social life.
In economics, interest refers to an index used to measure profitability on investments or bank savings. Depending on the amount invested or saved, the interest rate will show the percentage that will be obtained as a benefit, if the interest is related to an acquired loan, in this case it will indicate the percentage that must be paid. There are two kinds of interest: fixed interest, which is the one used in different financial transactions, this type of interest implies the calculation of a single percentage on the capital for the entire duration of the loan or deposit.
The variable rate, is one that is calculated on capital and that varies or modified in the course of time, this kind of interest is applied in each time period and is comprised of two figures, which result from the addition of both: a benchmark index and a differential percentage.
