Theories of Interest: Why Interest is Paid and Interest Rate Determination

Theories of Interest: Why Interest is Paid
and Interest Rate Determination

Different theories have been put forward regarding
interest.
These theories can be grouped under two headings:
(a) Theories which explain why interest is paid; and
(b) Theories which explain how the rate of interest is
determined.
Let us take these one by one.
Why Interest is paid:
Productivity Theory:
To explain the why of it, one theory put forward is the
Productivity Theory, which says interest is paid on
capital because capital is productive. The borrower can
get additional income from borrowed capital and in
easily afford to pay interest. But if capital were free, no
interest will be paid u spite of its productivity. Hence it
is scarcity rather than productivity which explains
interest. Scarcity also explains interest paid for
consumption purposes, whereas productivity theory fails
to explain it.
Abstinence or Waiting Theory:
Another theory is Abstinence or Waiting Theory. The
lender of capital has to be compensated for abstinence
or for not immediately using his own capital. He has to
do the waiting. But some people will wait and save
even if there is no interest. Hence this theory does not
explore interest satisfactorily.
Austrian or Agio Theory:
Then there is the Austrian or Agio Theory according to
which interest is paid to equate the future satisfaction
to the present satisfaction, as it is said that one bird in
hand is better than two in the bush.
Time Preference Theory:
Fisher’s Time Preference Theory says that interest is the
price for time preference. This time preference depends
on the size of a man’s income, the distribution of
income over time, the degree of certainty regarding its
enjoyment in the future and the temperament and
character of the individual.
For example, people with larger incomes will be able to
satisfy their present wants more fully and will, therefore,
discount future at a lower rate. Thus, the rates of
individual time preference, after having been determined
in this way, tend to become equal to the rate of interest.
Liquidity Preference Theory:
According to Keynes, who propounded this theory,
interest is not a reward for waiting, nor is it a payment
for time preference, but it is a reward for parting with
liquidity. This theory not only explains why interest is
paid; it also explains how the rate of interest is
determined.
Theories of Interest-Rate Determination:
As in the case of wages and rent, it is the forces of
demand and supply that together determine the rate of
interest. But the big question is: demand and supply of
what?
There are the following three theories of interest
determination which are based on three different
answers to the above basic question:
(a) Classical or Real Theory, which explains interest as
determined by the demand for and supply of capital.
(b) Loan-able Funds Theory or Neo-classical Theory,
which explains interest as determined by demand for
and supply of loan-able funds.
(c) Keynes’s Liquidity Preference Theory, which explains
that the rate of interest is determined by the demand for
and supply of money.

[Music] Jahkid_ft_Gee9_GBEGE LOVER

Alderpikiin entertainment

Presents
Jahkid_ft_Gee9_GBEGE LOVER

This song is for the sexy ladies
 Tag- @sheeknock_iam @gee9alderpikiin_ent

Download Gbege lover

FULL ALBUM: Kiss Daniel – “New Era”

Kiss Daniel Has Finally Released His Debut Album New Era . Th album is Made up of 15 tracks with collaborations with Wizkid, Reekado Banks, Tiwa Savage & Davido, Sugar Boi, 2Baba and Mr 2kay; with production credits to DJ Coublon, Young John, Jfem, E-kelly and Spells.

Download The Full Album below.
1. NEW KING

2. ANOTHER DAY

3. JOMBO

4. MAMA

5. GOBE

6. NAPO

7. GOOD TIME

8. GIVE INTO

9. KUDI

10. GHETTO BOYS

11. LAYE

12. ARE YOU ALRIGHT

13. ALONE

14. KISS ME

15. SIN CITY

16. UPON ME

17. WOJU

18. ALL GOD

19. DURO

20. NOTHING DEY

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Olabisi Onabanjo University post ume is out

Olabisi Onabanjo University, Ago-Iwoye, Ogun State will conduct a Post-UTME (PUTME) Screening for candidates who wish to be admitted into the University for 2016/2017 Academic year. The screening shall be conducted from Saturday 14th May to Saturday 21st May, 2016. at the Main Campus , Ago Iwoye. ELIGIBILITY The following shall be eligible for the screening: 1. UTME candidates that picked the University with a minimum score of 180 in the 2016/2017 UTME Results. 2. Candidates with 'A' Level Certificate or First Degree who had applied for Direct Entry Admission through JAMB into the University. 3. Candidates who possess Diploma certificate of the University and who had applied for Direct Entry admission through JAMB into the University. 4. Candidates with Diploma from other approved institutions withminimum of Upper Credit who had applied for Direct Entry admission into the University. 5. Candidates who did not pick the University but with a minimum score of 180 in the 2016/2017 UTME results. DETAILS OF THE EXAMINATION Click CHECK EXAM DATE to check your schedule. ****The Post UTME screening excercises would be conducted through Computer Based test (CBT)****  MODE OF REGISTRATION 1. Each eligible candidate for the screening will pay the sum of N7, 000.00 (Seven Thousand Naira) for processing and administrative charges through any of the following means: i. Card can be purchased online viaportal.oouagoiwoye.edu.ng/application or Payment through any of the university Point of Sales (POS) on any of our campuses. (Ago-Iwoye, Ikenne, Sagamu, Ayetoro and Ibogun). ii.      IJEBU-ODE - Olabisi Onabanjo University Guest House, Igbeba Ijebu-Ode. Payment should be made using their FULL NAMES (IN CAPITAL LETTERS) as it appears on the JAMB slip. Example: BALOGUN GARUBA CHINEDU (Surname first) 3. Visit the University Registration Website:www.oouagoiwoye.edu.ng/putme and printout your Post-UTME examination slip after payment. 4. Any candidate with problems should call the following Telephone Numbers 07036438383. 08052407748 08055606475 5. Each candidate should bring along the following to the venue of the screening: E-registration slip for UTME/DE 2016/2017 session. The Printout for the POST-UTME Registration form 2016/2017 UTME Result Slip. Candidates are expected to arrive at the screening venue an hour before the commencement of the exercise. Candidates are advised to regularly check for further information on the examinations on the University website: www.oouagoiwoye.edu.ng UNIVERSITY DOES NOT OPERATE THROUGH AGENT/CONSULTANT OR ANY BANK. PAYMENT SHOULD BE MADE THROUGH POS ONLY AT THE ABOVE LISTED LOCATIONS.Signed MRS OSUNSANYA OMOLARA  REGISTRAR For more info, Click here Or contact us Via BBM: 7BA6F470 Whatsapp: +2348134208030

Critic Says Nigerian Governor Adams Oshiomhole ’ s Ethiopian Wife Too Beautiful For Him

Critic Says Nigerian Governor Adams Oshiomhole’s Ethiopian Wife Too Beautiful For Him
The governor of Edo State has not stopped flaunting his beautiful wife, Lara Oshiomhole whom he married last year.
Oshiomhole and his wife have become an item at political events and social circles across Nigeria. Sources say that Oshiomhole never misses any opportunity to flaunt his wife.
What a lot of Nigerians don’t know is that Adams Oshiomhole is a romantic man. Ever since he got married to his new bride, Lara, from Ethiopia, he has totally become a transformed man.
In fact, he always wants her by his side where ever he goes. Lara is such a beautiful babe and Oshiomole makes sure that at any given opportunity he does not fail to flaunt his wife before his friends and associates. In fact, she is like his hand bag and makes sure that she is always by her side where ever he goes whether attending state dinners or even official business. He knows that he is married to a beautiful wife and he enjoys flaunting her where ever he goes.
However at a recent poverty alleviation workshop in Benin, one of younger men was heard saying Lara Oshiomhole deserves a cute looking man like him and not the governor.
According to whispering birds at the event, at the height of his intense conversation with another fellow, the young man out of jealous said the romance between Oshio. and Lara is a clear case of the beauty and the beast.
At this point, the unemployed graduate walked out of the poverty alleviation event.

Power outage: My Children Also Suffering Heat Rashes – Fashola

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, SAN, says the current epileptic power situation in the country is affecting virtually everybody.
According to the Minister, his children are also facing the problem associated with poor power supply.
The Minister while speaking on Channels Television said, “It’s a very hot season of the year. Even my children look at me and wonder. I see them sweating too, having heat rash and they look at me like what are you doing about this thing.
“Let me be very clear, this problem can be solved.
“It needs detailed and methodical approach.
“First work to do is to supply more gas because without gas, I am like a generator owner who can’t get fuel, so I can’t power my plants.
“There are errors of planning of yesterday but they are errors that can be corrected,” Fashola said, pointing out that the best way to get out of the power problem the country is facing is to supply more gas to the power plant.




👉 Also read : Beware! Cell phones radiation and skin bleaching chemicals can cause cancer!!!!




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Beware ! Cell Phones Radiation & Skin Bleaching Chemical Can Cause Cancer

Telephones radiate very powerful positive but harmful energies, so more powerful than X-ray, that they penetrate the brain and the organs and put pressure on them. The result is constant stress, tiredness, headaches that defy any medication. Electric shavers, television and computers produce rays that are damaging to the system when exposed to them for a long time.
The most dangerous, however, is the so-called mobile telephone. Their rays are so powerful that they penetrate the brain, affect and even change the human cells. These rays create electro-magnetic fields that are positive but very harmful to the cells.

The result is that abnormal cells begin to form, leading to cancer, fibroids, and other strange illnesses. It is not surprising that the USA, which is the most technological nation in the world, also has the highest number of degenerative diseases.
Note : I am not saying that computers, telephones, mobile phones etc are bad and should be banned. I am simply saying that using these gadgets have their own side effects and we should be conscious of them. Expired drugs, deposition of toxic wastes, soaps containing mercury, air pollution; all these are contributing to the rapid decline of the health of our people, thereby increasing their need for chemical drugs.

The sole beneficiaries, of course, are the vast pharmaceutical companies of Europe and America.
Thus the rich continues to grow richer while the poor grows poorer. I discovered, to my amazement, when I was in the Republic of Ireland in May 2002, that there still exist some companies that manufacture medicated and skin-bleaching soaps for exportation to West Africa.
These soaps contain, among others, mercury, a chemical so dangerous that it severely damages and weakens the immune system.
These companies were publicly banned in England, but the same English government helped them to shift their base to Dublin, the capital of the Republic of Ireland.
I walked round the city of Dublin and the only shops where I could find soaps containing mercury are in African shops, patronised by young African ladies, mostly Nigerians, who want their skins to resemble the European skin as much as possible.
[By Dr Anselm Adodo]

[Music] Brymo – Happy Memories

Olawale Ashimi, known popularly among his fans as Brymo is currently working on his 5th studio album titled Klitoris, which is reportedly ready for release and promises to be a groundbreaking effort.
Today he delivers the lead single off the project titled Happy Memories. It’s a romantic and soulful song which Brymo garnished with his characteristic heartfelt vocals. I am definitely looking forward to the album.

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FG To Commence Payment Of N5,000 To Poor Nigerians’ – Buhari

The Senior Special Assistant to the President on media, Garba Shehu, has revealed to newsmen that plans to disburse N5,000 monthly stipend to 1 million poor Nigerians is in its final stages.
Shehu said President Buhari feels the pains of the poor Nigerians, and is constantly working out ways to better their lives.
He said “For example, one million poor and vulnerable Nigerians will soon receive monthly payments of N5,000 to allow them live decently,” he said, noting that the programme was designed to recognize the need for ordinary, poor Nigerians to also benefit from the resources of the country.
“President Buhari believes that the resources of our country should be spent also on the vast majority of our people who are poor and vulnerable, and not squandered by government officials or the elite.”
He also revealed that the social investment plan has been included in the 2016 budget.
Shehu said “About seven to eight states have been completed already. Now the Presidency is working with the World Bank and the Bill Gates Foundation on how to identify the people to be paid the N5,000 and how they will be paid.
“This is the first time that the federal government of this country will be spending this much on social welfare for poor, bearing in mind that the money will go directly to the beneficiaries.”
President Muhammadu Buhari has also refused to devalue the Naira, adding that he is not convinced of its benefits to Nigerians.

BREAKING NEWS!!! Lil Kesh Will Leave YBNL Before The End Of May

Time Up!!
A Confirmed source close to YBNL disclosed to us that Lil Kesh is about to use the Exit door from Olamide’s owned record label,
YBNL .
Our source confirmed that his contract expired 2 weeks ago and Lil kesh said he’s not interested in renewing the deal.
Lil Kesh will be floating his own label soonest named “ YAGI” soon.
Our source further confirmed that this is the main reason why Olamide has not said anything concerning shooting or releasing a video for any Track on the Lil Kesh’s Album… Very Unusual of YBNL.
We’ll keep you all posted as new stories unfold in the YBNL’s Camp.

MUSIC: Kiss Daniel – Mama (Prod. Young John)

Kiss Daniel – Mama (Prod. Young John)

New tune from G Worldwide Frontline art “K Daniel”, He titles this “Mama”. Produced by Young John D Wicked producer.

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[Music] Ycee – These Niggaz

Another one from Tinny Entertainment front man Ycee, titled These Niggaz.
Download, Listen & Enjoy.

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[Music] Adekunle Gold – Ready

Story telling YBNL singer AdekunleGOLD is back on TTV with “Ready” off his upcoming album due very soon. This is going to be the last single off the album released, produced by Pheelz & mixed by SIMI. Another love searching story is “Ready” listen up & share your thouhgts!

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[Music] Olamide – Who You Epp (freestyle)

New Sound from YBNL Boss “Olamide” Titled “Who You
Epp” (Freestyle). The Song Was Produced By HKN In House
producer Shizzi,
Download and share.

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The Real Truth??!! Linda Ikeji Replies Wizkid

See What She Said below
So my darling little ‘friend’ Wizkidcame on my IG page this morning to blast me for writing yesterday that he was given quit notice at the Lekki home he claimed he bought some years ago, which he actually rented. He threatened to beat me up…called me an ugly old B!tch…(I’m ugly? lol) says I don’t have a man (crying over that..) and called my mum a loser…(what a child).
Anyway, all that don’t matter, people have said worse to me…what I wanted to address is the part where he said I slept with his director and he left me in a hotel…that one I will definitely want to address because some people actually believe it. That my dear friends, is a lie! Please continue…
First and foremost, I’ve never met Wizkid one on one. I’ve only seen him once in real life on stage at a show a few years ago. I’ve never met anybody who is his director. Guess he put that line in his comments to defame me. You that mad that people now know the house is not yours? Lol.
Trust me, if I knew someone was Wizkid’s director, I’d rather kill myself than sleep with him or any other entertainer for that matter (except maybe he’s my husband..hehe) because I know how some of these entertainers are…they kiss and tell a lot. You can’t afford to be messing around in their circle. So, no, I have NEVER slept with Wizkid’s director. I live a celibate life..most of the time. (Though, that has to end soon…I’m getting old and missing out on that part of life…lol)
I’ve always been an advocate of women respecting their bodies and owning their own. And I feel S3x should only happen when you’re in committed relationship (that is if you can’t wait till marriage) and I recommend celibacy for a long as you’re not committed to someone.

There’s absolutely no dignity in sleeping around and messing around with different men. It’s ugly and God don’t like ugly. So no, I’m not that woman, and will never be that woman. Nice try, Wizkid!
Having said that, I’m sure, you wonder why Wizkidis so mad at me? To be honest, I don’t know either. All I know is that his beef with me started a long time ago but he decided to start bashing me online after I refused a meeting with him.
A few months ago, he asked his PR people to contact me, that he wanted to talk to me. For some reason, he thought I didn’t like him and I was hurting his image online. He wanted to see how I could write more positive things about him but I turned down the meeting. Not that I have anything against him, I sincerely don’t! I think he’s an amazing talent and one of the few music stars in Nigeria with a midas touch. So this wasn’t personal. I just didn’t want to meet him. If he lobbies me then it means I won’t be able to write anything about him anymore…and my job is to write…about everything, including entertainers.
I am cordial with some of them…many of them I have never met. I try to stay away from gatherings where they are because the more friends you make in the entertainment industry, the less you can write. And that will inadvertently affect your work. The few ones that I call acquaintances, it’s hard to write about them because you feel you’re cool with them and even when you write, they call you to complain. So, the fewer ‘friends’ I have in the entertainment industry, the better my job will be.

So Wizkid can bash me all he wants…but I will continue to do my job. Maybe he thinks the more he bashes me, then I will stop writing about him? Won’t work. But meanwhile, if he tells a lie about me, I will address it. LIB plans to be around for a long time…some of these people will come and go! :-).
Thanks everyone and Wizkidfans for reading my response.
Oh and by the way, did I mention that his Porsche car is also on hire purchase? Oh Sh!t, I just mentioned that! And no, darling, you’re not 25! We know your real age! Continue to have an amazing career while I watch and continue to celebrate you.
Kisses

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Check Out This Adorable Oyinbo Father

Meet Yoga expert Katya Nova and his family looking adorable in this beach photo shoot.

It is obvious he is enjoying fatherhood…

Nigerian Soul Singer Timi Dakolo & Wife Mark 4th Wedding Anniversary With Romantic Trip To Dubai

Bukola and Timi Dakolo are currently in the beautiful city of Dubai for their 4th wedding anniversary.
Check out the cute couple doing love in Tokyo at Dubai Aquarium and Underwater Zoo inside the Dubai mall in the United Arab Emirates.

Congrats to the couple.

Married Actor Damola Olatunji & Girlfriend Bukky Awoyemi On Vacation With Twins [ PHOTOS ]

Popular Nollywood actor cum director, Damola Olatunji and his beautiful girlfriend Bukola Awoyemi recently went on a mini vacation to Dubai with their twins Kehinde & Taiwo Olatunji.
Check out them out..

The adorable children are the product of a secret romance between the Nollywood stars.

Damola & Raliat on their wedding day
The Nollywood ladies man gave Bukky Awoyemi belle around the same time he married another lady, Raliat.

MUSIC: Drake – These Days

“Woke up to 2 new drake songs. Today’s gunna be a good day.”
He also surprised fans by premiering a cover version of Nico’s classic 1967 song These Days.
The Canadian superstar has kept details about his new album under wraps and it’s unknown whether or not the two new offerings will appear on the finished version.
While he is yet to officially confirm an album release date, Views From the 6 is expected to drop in mid-April.


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Hilarious picture😂😂😂😂

True or False?😁😁😁😁😁

Ugandan Millionaire Dwarf Marries A Beautiful Woman [ See Wedding Photos

Here are more photos from the wonder wedding we talked about earlier today.
According to sources on the social media, the wedding took place in Uganda over the weekend.
The groom is a wealthy businessman while the madam is a single mother of 4.

Wishing the wonder couple a happy married life!




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Simi – Unpretty/Work (Cover) ft. Pearl

Simi collaborates with Pearl for an acoustic front of tunes from TLC’s “Unpretty”, Simi’s “Pillar Question” to Asa’s “Bibanke” lastly Rihanna’s most recent melody “Work”, they conveyed topnotch vocal mastery that will wonderment and amuse you.

DOWNLOAD: Simi – Unpretty/Work (Cover) ft. Pearl





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Donald Trump Daughter , Ivanka Gives Birth To Baby Boy On Easter Sunday [ PHOTOS]

34-year-old Ivanka Trump gave birth to her third child yesterday, the 27th of March 2016.
The adorable angel has been named Theodore James Kushner.
Ivanna and her hubby, Jared Kushner are already parents to two young kids, 4-year-old Arabella Rose and 2-year-old Joseph Frederick.

Congrats to them.




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Photo Of The Day : Danku Marries Agoro .. Love Is Truly Magical

Photo Of The Day: Danku Marries Agoro..Love Is Truly Magical
The only explanation here is that the love between them is magical.
Happy married life to Mr Danku & Mrs Agoro **wink wink**











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