Interest

Interest is money paid by a borrower to a lender for a credit or a similar liability. Important examples are bond yields, interest paid for bank loans, and returns on savings. Interest differs from profit in that it is paid to a lender, whereas profit is paid to an owner. In economics, the various forms of credit are also referred to as loanable funds.

When money is borrowed, interest is typically calculated as a percentage of the principal, the amount owed to the lender. The percentage of the principal that is paid over a certain period of time (typically a year) is called the interest rate. Interest rates are market prices which are determined by supply and demand. They are generally positive because loanable funds are scarce.

Interest is often compounded, which means that interest is earned on prior interest in addition to the principal. The total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e. In practice, interest is most often calculated on a daily, monthly, or yearly basis, and its impact is influenced greatly by its compounding rate.

Attention

Attention is the behavioral and cognitive process of selectively concentrating on a discrete aspect of information, whether deemed subjective or objective, while ignoring other perceivable information. Attention has also been referred to as the allocation of limited processing resources.

Attention remains a major area of investigation within education, psychology, neuroscience, cognitive neuroscience, and neuropsychology. Areas of active investigation involve determining the source of the sensory cues and signals that generate attention, the effects of these sensory cues and signals on the tuning properties of sensory neurons, and the relationship between attention and other behavioral and cognitive processes like working memory and vigilance. A relatively new body of research, which expands upon earlier research within neuropsychology, is investigating the diagnostic symptoms associated with traumatic brain injuries and their effects on attention. Attention also varies across cultures.

Interest (disambiguation)

Interest is any fee paid on borrowed capital. It may also refer to: