Misplaced Pages

#127872

53-532: The Russkaya Pravda (sometimes translated as Rus' Justice , Rus' Truth , or Russian Justice ) was the legal code of Kievan Rus' and its principalities during the period of feudal fragmentation . It was written at the beginning of the 12th century and remade during many centuries. The basis of the Russkaya Pravda , the Pravda of Yaroslav , was written at the beginning of the 11th century. The Russkaya Pravda

106-399: A "different view". The first written evidence of compound interest dates roughly 2400 BC. The annual interest rate was roughly 20%. Compound interest was necessary for the development of agriculture and important for urbanization. While the traditional Middle Eastern views on interest were the result of the urbanized, economically developed character of the societies that produced them,

159-603: A common law country with legislative practices in the English tradition , codes modify the existing common law only to the extent of its express or implicit provision, but otherwise leaves the common law intact. In the United States and other common law countries that have adopted similar legislative practices, a code of law is a standing body of statute law on a particular area, which is added to, subtracted from, or otherwise modified by individual legislative enactments. The legal code

212-498: A concept is unknown, though its use in Sumeria argue that it was well established as a concept by 3000BC if not earlier, with historians believing that the concept in its modern sense may have arisen from the lease of animal or seeds for productive purposes. The argument that acquired seeds and animals could reproduce themselves was used to justify interest, but ancient Jewish religious prohibitions against usury (נשך NeSheKh ) represented

265-454: A feudal loan ), kholops (" kholop " – a feudal-dependent peasant, who could be killed or sold like a slave) etc. The Vast Edition of Pravda contains special regulations regarding the status of zakups and kholops . It also reflects the role of the court of a knyaz , by increasing and giving various forms of punishment and penalties. It instituted fines that benefited the knyaz or his administration with diminished compensation to

318-487: A given community for killing soldiers of a knyaz , tiuns (" tiun ", a privileged servant of knyazs or boyars ), starostas (" starosta ", a representative from the low-ranking administration of a knyaz ), otroks (" otrok ", a low-ranking soldier in the army of a knyaz ) and other servants on their own territory. The Pravda Yaroslavichey provided severe punishment for arson , deliberate cattle mutilation , and collective encroachment on rich people's property . After

371-424: A growth factor according to the periodic interest, and then decreases by the amount paid p at the end of each period: where By repeated substitution, one obtains expressions for B n , which are linearly proportional to B 0 and p , and use of the formula for the partial sum of a geometric series results in A solution of this expression for p in terms of B 0 and B n reduces to To find

424-617: A woman was killed, one would have to pay half of the regular fine (called poluvir'ye , half of vyra ). The Pravda also protected the health and honor of the free members of the feudal society and provided financial compensation for mutilation or insult by word or deed. The Pravda had a comprehensive system of punishments and penalties for larceny in a city or countryside, deliberate damage to forests, hunting grounds or lands, trespassing etc. It also regulated debt between individuals and contained articles of liability and hereditary law. The Pravda made use of witnesses , oaths and of

477-414: Is an accepted version of this page In finance and economics , interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay to the lender or some third party. It is also distinct from dividend which

530-407: Is calculated only on the principal amount, or on that portion of the principal amount that remains. It excludes the effect of compounding . Simple interest can be applied over a time period other than a year, for example, every month. Simple interest is calculated according to the following formula: where For example, imagine that a credit card holder has an outstanding balance of $ 2500 and that

583-399: Is paid by a company to its shareholders (owners) from its profit or reserve , but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs. For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than

SECTION 10

#1732847948128

636-409: Is prohibited, as well as making money out of money is unacceptable. All financial transactions must be asset-backed and must not charge any interest or fee for the service of lending. It is thought that Jacob Bernoulli discovered the mathematical constant e by studying a question about compound interest . He realized that if an account that starts with $ 1.00 and pays say 100% interest per year, at

689-680: Is very different in form and content from all other civil codes. A civil code typically forms the core of civil law systems. The legal code typically covers exhaustively the entire system of private law. A criminal code or penal code is a common feature in many legal systems. Codification of the criminal law allows the criminal law to be more accessible and more democratically made and amended. van Gulik, R.H. Crime and Punishment in Ancient China: The Tang Yin Pi Shih . Orchid Press, 2007. ISBN   9745240915 , ISBN   978-974-524-091-9 . Interest This

742-594: The Austrian civil code ( Allgemeines Bürgerliches Gesetzbuch ) of 1812, the German civil code ( Bürgerliches Gesetzbuch ) of 1900 and the Swiss codes . The European codifications of the 1800s influenced the codification of Catholic canon law resulting in the 1917 Code of Canon Law which was replaced by the 1983 Code of Canon Law and whose Eastern counterpart is the Code of Canons of

795-624: The Code of Lipit-Ishtar (1934–1924 BC), and the Babylonian Code of Hammurabi (c. 1760 BC), are among the earliest and best preserved legal codes, originating from Sumer , Mesopotamia (now Iraq ). In the Roman empire , a number of codifications were developed, such as the Twelve Tables of Roman law (first compiled in 450 BC) and the Corpus Juris Civilis of Justinian, also known as

848-825: The Russkaya Pravda took place in times of Yaroslav's sons and his grandson Vladimir Monomakh . New provisions are believed to have been added to the Russkaya Pravda after the revolts in Kiev , Novgorod , and Rostov - Suzdal province in 1068–1071. In the arising Russian state, the Russkaya Pravda was replaced in 1497 by the Sudebnik , the Code of Law. Several centuries earlier, new legal codes were promulgated in Pskov and Novgorod (the Pskov Judicial Charter and Novgorod Judicial Charter ). Pravda Yaroslavichey increased responsibility of

901-527: The theory of fructification . By applying an opportunity cost argument, comparing the loan rate with the rate of return on agricultural land, and a mathematical argument, applying the formula for the value of a perpetuity to a plantation, he argued that the land value would rise without limit, as the interest rate approached zero. For the land value to remain positive and finite keeps the interest rate above zero. Adam Smith , Carl Menger , and Frédéric Bastiat also propounded theories of interest rates. In

954-457: The trial by water or iron , a kind of a last-resort test used to prove defendant's innocence or guilt in legal proceedings. The legal process also included testimony witnesses, evidence , collecting or hot pursuit . Investigators had to check for false accusations, as well. Legal code In a civil law country, a code of law typically exhaustively covers the complete system of law, such as civil law or criminal law . By contrast, in

1007-408: The $ 6 per year after only 6 months ( time preference ), and so has the opportunity to reinvest the first $ 3 coupon payment after the first 6 months, and earn additional interest. For example, suppose an investor buys $ 10,000 par value of a US dollar bond, which pays coupons twice a year, and that the bond's simple annual coupon rate is 6 percent per year. This means that every 6 months, the issuer pays

1060-465: The 1113 Riot in Kiev, an exorbitant interest law was introduced that limited financial operations of moneylenders . The Pravda stabilized the system of feudal relations and social inequality. During the 11th–13th centuries, it made new laws for the smerds ("smerd" – a feudal-dependent peasant), zakups (" zakup " - a feudal-dependent peasant, who could become free after paying off his " zakup ",

1113-615: The Americas, the influence of Continental legal codes has manifest itself in two ways. In civil law jurisdictions, legal codes in the Continental tradition are common. In common law jurisdictions, however, there has been a strong trend towards codification. The result of such codification, however, is not always a legal code as found in civil law jurisdictions. For example, the California Civil Code largely codifies common law doctrine and

SECTION 20

#1732847948128

1166-601: The Eastern Churches . Meanwhile, African civilizations developed their own legal traditions, sometimes codifying them through consistent oral tradition, as illustrated e.g. by the Kouroukan Fouga , a charter proclaimed by the Mali Empire in 1222–1236, enumerating regulations in both constitutional and civil matters, and transmitted to this day by griots under oath. The Continental civil law tradition spread around

1219-756: The German Bürgerliches Gesetzbuch , and also influenced by the Japanese code. This new tradition has been largely maintained in the legal system of the People's Republic of China since 1949. Meanwhile, codifications also became more common in common law systems. For example, a criminal code is found in a number of common law jurisdictions in Australia and the Americas , and continues to be debated in England . In

1272-506: The Justinian Code (429–534 AD). However, these law codes did not exhaustively describe the Roman legal system. The Twelve Tables were limited in scope, and most legal doctrines were developed by the pontifices , who interpreted the tables to deal with situations far beyond what is contained therein. The Justinian Code collected together existing legal material at the time. In ancient China ,

1325-592: The Short Edition ( Kratkaya ), the Extensive Edition ( Prostrannaya ), and the Abridged Edition ( Sokrashchyonnaya ). Over 110 extant copies dating from the 13th to the 18th centuries are preserved, included in various manuscripts: chronicles and compilations. Of these, over 100 copies, including the oldest preserved, are of the Extensive Edition. This code was discovered by the historian Vasily Tatischev in

1378-422: The amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower. Interest differs from profit , in that interest is received by a lender, whereas profit is received by the owner of an asset , investment or enterprise . (Interest may be part or

1431-463: The appearance of appropriate conditions for entrepreneurs to start new, lucrative businesses. Given that borrowed money was no longer strictly for consumption but for production as well, interest was no longer viewed in the same manner. The first attempt to control interest rates through manipulation of the money supply was made by the Banque de France in 1847. The latter half of the 20th century saw

1484-446: The basis of the Russkaya Pravda . The Short Edition of the Russkaya Pravda contains two apparently distinct parts, called by researchers Pravda Yaroslava ( Yaroslav ' s Law , ca. 1017), otherwise known as Drevneyshaya Pravda ("Oldest Justice") of Yaroslav the Wise , and Pravda Yaroslavichey ("The Law by Yaroslav ' s sons", ca. 1054). Some indicate other distinct components of

1537-554: The basis of the legal systems of many countries. Roman law was either adopted by legislation (becoming positive law ), or through processing by jurists. The accepted Roman law is usually then codified and forms part of the central Code. The codification movement gathered pace after the rise of nation-states after the Treaty of Westphalia . Prominent national civil codes include the French Napoleonic Code ( code civil ) of 1804,

1590-530: The benefit to the borrower, and interest received by the lender in terms of a premium for the risk of default . In the sixteenth century, Martín de Azpilcueta applied a time preference argument: it is preferable to receive a given good now rather than in the future. Accordingly, interest is compensation for the time the lender forgoes the benefit of spending the money. On the question of why interest rates are normally greater than zero, in 1770, French economist Anne-Robert-Jacques Turgot, Baron de Laune proposed

1643-401: The end of the year, the value is $ 2.00; but if the interest is computed and added twice in the year, the $ 1 is multiplied by 1.5 twice, yielding $ 1.00×1.5  = $ 2.25. Bernoulli noticed that if the frequency of compounding is increased without limit, this sequence can be modeled as follows: where n is the number of times the interest is to be compounded in a year. In economics,

Russkaya Pravda - Misplaced Pages Continue

1696-684: The first comprehensive criminal code was the Tang Code , created in 624 AD in the Tang dynasty . This, and subsequent imperial codes, formed the basis for the penal system of both China and other East Asian states under its cultural influence. The last and best preserved imperial code is the Great Qing Legal Code , created in 1644 upon the founding of the Qing dynasty . This code was the exclusive and exhaustive statement of Chinese law between 1644 and 1912. Though it

1749-403: The holder of the bond a coupon of 3 dollars per 100 dollars par value. At the end of 6 months, the issuer pays the holder: Assuming the market price of the bond is 100, so it is trading at par value, suppose further that the holder immediately reinvests the coupon by spending it on another $ 300 par value of the bond. In total, the investor therefore now holds: and so earns a coupon at the end of

1802-478: The late 19th century, Swedish economist Knut Wicksell in his 1898 Interest and Prices elaborated a comprehensive theory of economic crises based upon a distinction between natural and nominal interest rates . In the 1930s, Wicksell's approach was refined by Bertil Ohlin and Dennis Robertson and became known as the loanable funds theory. Other notable interest rate theories of the period are those of Irving Fisher and John Maynard Keynes . Simple interest

1855-417: The nearest cent.) Compound interest includes interest earned on the interest that was previously accumulated. Compare, for example, a bond paying 6 percent semiannually (that is, coupons of 3 percent twice a year) with a certificate of deposit ( GIC ) that pays 6 percent interest once a year. The total interest payment is $ 6 per $ 100 par value in both cases, but the holder of the semiannual bond receives half

1908-503: The new Jewish prohibition on interest showed a pastoral, tribal influence. In the early 2nd millennium BC, since silver used in exchange for livestock or grain could not multiply of its own, the Laws of Eshnunna instituted a legal interest rate, specifically on deposits of dowry . Early Muslims called this riba , translated today as the charging of interest. The First Council of Nicaea , in 325, forbade clergy from engaging in usury which

1961-445: The next 6 months of: Assuming the bond remains priced at par, the investor accumulates at the end of a full 12 months a total value of: and the investor earned in total: The formula for the annual equivalent compound interest rate is: where For example, in the case of a 6% simple annual rate, the annual equivalent compound rate is: The outstanding balance B n of a loan after n regular payments increases each period by

2014-406: The payment if the loan is to be finished in n payments, one sets  B n  = 0. The PMT function found in spreadsheet programs can be used to calculate the monthly payment of a loan: An interest-only payment on the current balance would be The total interest, I T , paid on the loan is The formulas for a regular savings program are similar, but the payments are added to

2067-500: The rate of interest is the price of credit , and it plays the role of the cost of capital . In a free market economy, interest rates are subject to the law of supply and demand of the money supply , and one explanation of the tendency of interest rates to be generally greater than zero is the scarcity of loanable funds . Over centuries, various schools of thought have developed explanations of interest and interest rates. The School of Salamanca justified paying interest in terms of

2120-436: The rise of interest-free Islamic banking and finance , a movement that applies Islamic law to financial institutions and the economy. Some countries, including Iran, Sudan, and Pakistan, have taken steps to eradicate interest from their financial systems. Rather than charging interest, the interest-free lender shares the risk by investing as a partner in profit loss sharing scheme, because predetermined loan repayment as interest

2173-631: The same reason, interest has often been looked down upon in Islamic civilization , with almost all scholars agreeing that the Qur'an explicitly forbids charging interest. Medieval jurists developed several financial instruments to encourage responsible lending and circumvent prohibitions on usury, such as the Contractum trinius . In the Renaissance era, greater mobility of people facilitated an increase in commerce and

Russkaya Pravda - Misplaced Pages Continue

2226-490: The simple annual interest rate is 12.99% per annum , applied monthly, so the frequency of applying interest is 12 per year. Over one month, interest is due (rounded to the nearest cent). Simple interest applied over 3 months would be If the card holder pays off only interest at the end of each of the 3 months, the total amount of interest paid would be which is the simple interest applied over 3 months, as calculated above. (The one cent difference arises due to rounding to

2279-569: The text of one of the Novgorod chronicles and brought to the attention of the Russian Academy of Sciences in 1738. The first commented edition of the text was published by August Ludwig von Schlözer in 1767. The legal regulations of the Russkaya Pravda reflected the evolution of the social relations in Rus' of the 11th–13th centuries. Common law, knyaz legislation, and legal proceedings represented

2332-524: The text, possibly added later. Yaroslav ' s Law comprised legal regulations of feudal law along with the archaic regulations that could be traced back to the primitive communal system. According to a popular theory, it was promulgated in order to settle a conflict between Konstantin Dobrynich , a posadnik of Novgorod , and the Varangian population of the city. Subsequent development and improvement of

2385-465: The thing and the use of the thing. In the medieval economy , loans were entirely a consequence of necessity (bad harvests, fire in a workplace) and, under those conditions, it was considered morally reproachable to charge interest. It was also considered morally dubious, since no goods were produced through the lending of money, and thus it should not be compensated, unlike other activities with direct physical output such as blacksmithing or farming. For

2438-541: 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. Credit is thought to have preceded the existence of coinage by several thousands of years. The first recorded instance of credit is a collection of old Sumerian documents from 3000 BC that show systematic use of credit to loan both grain and metals. The rise of interest as

2491-437: The victims. In an attempt to abolish the blood feud (that was quite common at that time), the Pravda narrowed its "usage" and limited the number of avengers to the closest relatives of the dead. If there were no avengers on the victim's side, the killer had to pay a fine (called vyra ) in favour of the knyaz and partial compensation to the relatives of the victim (the killer's community had to help him pay his fine). If

2544-432: The whole of the profit on an investment , but the two concepts are distinct from each other from an accounting perspective.) The rate of interest is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent (usually expressed as a percentage). Compound interest means that interest is earned on prior interest in addition to the principal. Due to compounding,

2597-684: The world along with European cultural and military dominance in recent centuries. During the Meiji Restoration , Japan adopted a new Civil Code (1898), based primarily on the French civil code and influenced by the German code. After the Xinhai Revolution of 1911 in China, the new Republic of China government abandoned the imperial code tradition and instead adopted a new civil code strongly influenced by

2650-463: Was a common feature of the legal systems of the ancient Middle East. Tablets discovered in the ancient city of Ebla (Tell Mardikh in modern-day Syria ) provide the earliest known evidence of a law code, dating back to 2400 BC. In addition, The UrukAgina Law Code (2380–2360 BC), the Sumerian Code of Ur-Nammu (c. 2100–2050 BC), the Code of Eshnunna (approximately 100 years before Lipit-Ishtar),

2703-507: Was a main source of the law of Kievan Rus' . In spite of great influence of Byzantine legislation on the contemporary world, and in spite of great cultural and commercial ties between Byzantium and Kievan Rus', the Russkaya Pravda bore no similarity whatsoever to the law of the Byzantine Empire . The absence of capital and corporal punishment rather reflects Norse jurisprudence . Three recensions of Russkaya Pravda are known:

SECTION 50

#1732847948128

2756-574: Was defined as lending on interest above 1 percent per month (12.7% AER ). Ninth-century ecumenical councils applied this regulation to the laity . Catholic Church opposition to interest hardened in the era of the Scholastics , when even defending it was considered a heresy . St. Thomas Aquinas , the leading theologian of the Catholic Church , argued that the charging of interest is wrong because it amounts to " double charging ", charging for both

2809-581: Was in form a criminal code, large parts of the code dealt with civil law matters and the settlement of civil disputes. The code ceased its operation upon the fall of the Qing dynasty in 1912, but significant provisions remained in operation in Hong Kong until well into the 1970s due to a peculiar interaction between it and the British common law system. In Europe, Roman law , especially the Corpus Juris Civilis , became

#127872