Assume you have four apples. Assume your neighbour has five oranges. Assume that today's rate is that four apples are equal to five oranges (introducing medium of exchange, money, will not change anything.). Now if your neighbours says that he wants to have your four apples today, but will pay the five oranges one year later.
Origin Of Interest
Origin Of Interest
Origin Of Interest
Assume you have four apples. Assume your neighbour has five oranges. Assume that today's rate is that four apples are equal to five oranges (introducing medium of exchange, money, will not change anything.). Now if your neighbours says that he wants to have your four apples today, but will pay the five oranges one year later.