2. In the same way, the interest rate in financial management refers to the payment due. Generally, the paper ticket is half a year, and the electric ticket is one year. Postpaid interest is more common in bank loans.
Extended data:
In financing or bill financing, paying interest in advance means that part or all of the income from financing investment or financing can be paid in advance. Generally, the principal and interest are paid to customers in advance in the form of invoice or letter of credit.
In the field of loans, there is also a saying that loan interest is paid in advance. Generally speaking, the lending institution or financial service structure will charge the loan interest in advance when lending, that is, the interest will be charged first and then the loan principal will be charged.
The payment method depends on the loan contract. There are one-time loans that charge interest, and there are also batches and monthly principal payments, which is commonly known as beheading interest in the industry.
For example, you are the pre-interest in the definition of financial management, that is, the financial management company pays the financial management interest to the customer first, and returns the investment principal after maturity; If the loan is defined as interest payment in advance, such as charging the loan interest at one time when buying a car, the loan interest will be collected and paid together with the down payment before the monthly car purchase.
Loan pre-interest means that part or all of the income can be paid in advance, but the principal and interest are generally paid in the form of invoice or letter of credit.
Needless to say, after the interest comes, you can get it back with interest at maturity.
If it is a loan, pay it back in advance, or pay the corresponding upfront interest after a period of time. For example, the general loan is the so-called interest after receipt, and the bill financing is the interest before receipt.
The level of loan interest is related to the loan interest rate. How much money should be repaid every month, and whether it is within your own funds, you should know when choosing a loan.
The amount of loan interest is also closely related to the repayment method.
Marx's viewpoint of political economy;
According to Marxism, interest is actually a part of profit and a transformation form of surplus value.
Money itself cannot create money, nor will it increase in value. Only when functional capital purchases means of production and labor with money can it create surplus value through the labor of hiring workers in the production process.
Monetary capitalists share surplus value with functional capitalists by virtue of capital ownership.
Therefore, the separation of capital ownership and capital use right is the inherent premise of interest generation.
Due to the characteristics of reproduction process, the coexistence of capital surplus and capital shortage is the external condition for interest generation.
When money is possessed by capitalists and used as a means to exploit the surplus value of hired workers, it becomes capital.
Money performs the function of capital and gains additional use value, that is, the ability to produce average profits.
All capitalists are driven by the interests of pursuing surplus value, and profits are converted into average profits.
The average profit is divided into interest and income of business owners, which are owned by different capitalists.
Therefore, interest, like profit in essence, is the transformation form of surplus value, which reflects the relationship between borrowing capitalists and functional capitalists and exploiting workers.