just wondering

[kendor]

Does anyone know why in financial terms they use the word "interest" as they do? it doesn't really give the definition of accumulating something does it?

 

[AdamW]

I would imagine the reasons are twofold:

1) One talks of business "interests". Your interest is what you receive back in return from your interests.

2) "It is in your best interests" - interest is obviously of benefit to you, thus it is in your interests to accrue it.

 

[kendor]

I know what you are saying Adam and i get your gist but i still think "accumulation " would have been a better choice as "interest on your interests" doesn't seem good use of english to me, same as why call your investments interests? Another word with better use in this context is "return" i can relate to that such as a return on your investments but interest doesn't seem to bear any relationship to the world of finance and hence why i was wondering why they adopted it. Could it be some obscure translation from latin or something?

 

[pipme]

Entry: interest
Function: noun
Definition: investment
Synonyms: accrual, authority, bonus, claim, commitment, credit, discount, drag, due, earnings, gain, influence, involvement, juice, participation, percentage, piece, points, portion, premium, right, share, stake, title
Roget's New Millennium™ Thesaurus, First Edition (v 1.0.5)

BTW Interest rate .. Interest accrued or attracted etc Not just 'interest' , yea or nay ?

 

[kendor]

Yep Pip that is the definition today of the word "interest" but i was wondering how it came about to mean that and not just in "having an interest in something"

 

[pipme]

http://dictionary.reference.com/search?q=interest

Seek and ye may find ... if yer lucky !!

Perhaps akin to Football Pools 'perm' which actually is not Permutations but combinations of x from y .......

 

[kendor]

cheers

 

[pipme]

Come on lads back to the grind stone !! Think of the master !!

 

[kendor]

Come on lads back to the grind stone !! Think of the master !!

the missus is at work too

 

[pipme]

Snap !!

BTW is it Doreen, Dorothy, Dorcus, Dorinda, or all 4

 

[planenut]

Interesting though that an accumulation of interest would be interesting to any parties with a vested interest...........
...
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Parties? now there's a thing.
"Nelson died amongst a party of his own men"
Nobody told him that he should have been enjoying himself!
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then again, maybe the party was "dead", so he left
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or did he write?

I'm going for a lie down again........

 

[pipme]

Horry Nelson had a dalience in Bath with Emma Hamilton.. his wife Fa nnyand his father Edmund were also resident in Bath, Eddy died there, in his favorite city for taking the waters ... Horatio liked the social life there.
But he was quite harmless .. especially after a trip to Tenerife in 1797 !! Some things never change.