Interest Credit

03.12.15 / News / Author: Martin

In today’s world economy include the presence of financial markets and all services and operations that can be derived from this activity, since they allow the generation of certain market conditions that put in motion, plus a better flow of Currency den avoiding stagnation, so the activity of financial and banking institutions is of great importance in the economy in the world. On this basis it is important to know more about the components present within the financial market, which in this article will discuss the interest and what is clear from this figure. Speaking of interest, mainly be referring to a medium that serves as an index to determine or measure performance you can get savings, but also can show otherwise, ie as a means to serve as an index of cost of credit so in the first case the interest is in favor of bank customers, while in the second case the interest will be for the bank or financial institution issuing the loan. The interest occurs when a person goes to a bank or financial institution and have a savings account, so by the time the tanks are inside the account, it will generate a return for the client, which will interest, which provides that these deposits are the resources used by the bank for loans, so that interest rate would result from a passive activity of banks. The other way given the interest is when a person goes to a bank and requesting a loan of any kind, so the person during the period to request to cancel all credit must pay the interest, which would be an active operation banks. A general point is given on the topic of interest is that such evidence is shown by percentage as well as an example we can talk about interest rate of 6% per year in savings. Indicate interest in a certain amount of money and a certain time what percentage of that money would be a surplus or otherwise for a period of time to cancel and for a certain amount of money as one would have to pay more in the case of credit and loans. Usually handled as a criterion within which the interest applies to annual periods, since it is more convenient for the various operations, but this does not limit the possibility of applying interest to different periods, so we can talk of interest monthly, quarterly, biannually, etc.. In order to obtain the interest mainly apply two types of indicators to measure performance is to be derived from savings or debts that were generated from the credits, such indicators are the nominal interest rate-TIN-and the annual percentage rate – APR.