People generally use Li to express loan interest, Li is the unit of measurement, meaning a few thousandths. If it is used to express interest, it is usually monthly interest, because daily interest is calculated in ten thousand units and annual interest is calculated in percentage.
Interest is the use fee of money in a certain period of time, and it refers to the reward that money holders (creditors) get from borrowers (debtors) 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.
Theoretical basis:
First, Marx's political economy view
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.