This is compared with the average capital. Raising interest rates means increasing monthly payments, which will eventually exceed the interest on average capital. Average capital refers to dividing the total loan into equal parts during the repayment period, repaying the same amount of principal and the interest generated by the remaining loans in the current month every month.

Interest refers to the reward that the currency holder (creditor) gets from the borrower (debtor) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds. Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit.

Abstract interest point refers to the value-added amount brought by monetary funds injected into the real economy and returned. Generally speaking, interest refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for using the borrowed currency or capital. Also known as the symmetry of sub-fund and parent fund (principal).