{"id":41,"date":"2023-11-02T04:12:30","date_gmt":"2023-11-02T04:12:30","guid":{"rendered":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/chapter\/introduction\/"},"modified":"2024-09-25T08:31:58","modified_gmt":"2024-09-25T08:31:58","slug":"introduction","status":"publish","type":"chapter","link":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/chapter\/introduction\/","title":{"raw":"2.1 Introduction","rendered":"2.1 Introduction"},"content":{"raw":"<p style=\"text-align: justify;\">Interest is the compensation one gets for lending a certain asset. For example, suppose that you put some money in a bank account for a year. Then, the bank can do whatever it wants with the money for a year. To reward you for that, it pays you some interest. The asset being lent out is called the capital.<\/p>\r\n<p style=\"text-align: justify;\">In general, both the capital and interest are expressed in money. However, that is not necessary. For instance, a farmer may lend his tractor to a neighbour, and get a part of the grain harvested in return. In this course, the capital is always expressed in money, or called capital.<\/p>","rendered":"<p style=\"text-align: justify;\">Interest is the compensation one gets for lending a certain asset. For example, suppose that you put some money in a bank account for a year. Then, the bank can do whatever it wants with the money for a year. To reward you for that, it pays you some interest. The asset being lent out is called the capital.<\/p>\n<p style=\"text-align: justify;\">In general, both the capital and interest are expressed in money. However, that is not necessary. For instance, a farmer may lend his tractor to a neighbour, and get a part of the grain harvested in return. In this course, the capital is always expressed in money, or called capital.<\/p>\n","protected":false},"author":43,"menu_order":1,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[49],"contributor":[],"license":[54],"class_list":["post-41","chapter","type-chapter","status-publish","hentry","chapter-type-numberless","license-cc-by-sa"],"part":39,"_links":{"self":[{"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/pressbooks\/v2\/chapters\/41","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/wp\/v2\/users\/43"}],"version-history":[{"count":2,"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/pressbooks\/v2\/chapters\/41\/revisions"}],"predecessor-version":[{"id":264,"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/pressbooks\/v2\/chapters\/41\/revisions\/264"}],"part":[{"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/pressbooks\/v2\/parts\/39"}],"metadata":[{"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/pressbooks\/v2\/chapters\/41\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/wp\/v2\/media?parent=41"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=41"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/wp\/v2\/contributor?post=41"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/financialmathematicsineconomics\/wp-json\/wp\/v2\/license?post=41"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}