The extra money paid to the lenders give nothing in return. They get a lot of money for nothing .It would be nice to know why this sort of thing is allowed to happen.
2007-11-06 20:34:00 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In return for paying interest, you get the use of someone else's money. If you do not desire to pay interest, then you must use your own money to purchase items.
2007-11-07 00:17:26 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Interest is what you pay someone for them letting you use their money. After all, they could use that same money for another purpose such as opening and running their own business, investing in the stock market, etc and all of those would possible pay them a return on their investment. Otherwise there would be no incentive for people to let you borrow thier money and instead of saving for a down payment, you'd have to save for the entire purchase price of a home.
2007-11-06 23:33:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Its allowed to happen because its business.
You need money, they have money. So they charge you for it. Nothing is free in life.
That money then pays for the running of the business that lent it, offices, infrastructure, staff etc, and any profit left is distributed to the shareholders.
2007-11-06 20:43:17 · answer #3 · answered by Subic 5 · 2⤊ 0⤋