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Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money,^[1] or money earned by deposited funds.^[2]

When money is borrowed, interest is typically paid to the lender as a percentage of the principal, the amount owed to the lender. The percentage of the principal that is paid as a fee over a certain period of time (typically one month or year) is called the interest rate. A bank deposit will earn interest because the bank is paying for the use of the deposited funds. Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. The interest is calculated upon the value of the assets in the same manner as upon money.

Interest is compensation to the lender, for a) risk of principal loss, called credit risk; and b) forgoing other investments that could have been made with the loaned asset. These forgone investments are known as the opportunity cost. Instead of the lender using the assets directly, they are advanced to the borrower. The borrower then enjoys the benefit of using the assets ahead of the effort required to pay for them, while the lender enjoys the benefit of the fee paid by the borrower for the privilege. In economics, interest is considered the price of credit.

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.^{[citation needed]}

History of interest[link]

According to historian Paul Johnson, the lending of "food money" was commonplace in Middle East civilizations as far back as 5000BC. They regarded interest as legitimate since acquired seeds and animals could "reproduce themselves"; whilst the ancient Jewish religious prohibitions against usury were a "different view".^[3].

In the Roman Empire interest rates usually calculated on a monthly basis and set as multiples of 12, apparently for expedient calculation by the wealthy private individuals that did most of the moneylending.^[4]

The First Council of Nicaea, in 325, forbade clergy from engaging in usury^[5] which was defined as lending on interest above 1 percent per month (12.7% APR). Later ecumenical councils applied this regulation to the laity.^[5][6] Catholic Church opposition to interest hardened in the era of 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 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.^{[citation needed]} 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.^[7] For the same reason, interest has often been looked down upon in Islamic civilization, with most scholars agreeing that the Qur'an explicitly forbids charging interest.

Medieval jurists developed several financial instruments to encourage responsible lending and circumvent prohibitions on ursury, such as the Contractum trinius

Of Usury, from Brant's Stultifera Navis (the Ship of Fools); woodcut attributed to Albrecht Dürer

In the Renaissance era, greater mobility of people facilitated an increase in commerce and 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 School of Salamanca elaborated on various reasons that justified the charging of interest: the person who received a loan benefited, and one could consider interest as a premium paid for the risk taken by the loaning party.

There was also the question of opportunity cost, in that the loaning party lost other possibilities of using the loaned money. Finally and perhaps most originally was the consideration of money itself as merchandise, and the use of one's money as something for which one should receive a benefit in the form of interest. Martín de Azpilcueta also considered the effect of time. Other things being equal, one would prefer to receive a given good now rather than in the future. This preference indicates greater value. Interest, under this theory, is the payment for the time the loaning individual is deprived of the money.

Economically, the interest rate is the cost of capital and is subject to the laws of supply and demand of the money supply. The first attempt to control interest rates through manipulation of the money supply was made by the French Central Bank in 1847.

The first formal studies of interest rates and their impact on society were conducted by Adam Smith, Jeremy Bentham and Mirabeau during the birth of classic economic thought.^{[citation needed]} In the late 19th century leading 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 early 20th century, Irving Fisher made a major breakthrough in the economic analysis of interest rates by distinguishing nominal interest from real interest. Several perspectives on the nature and impact of interest rates have arisen since then.

The latter half of the 20th century saw the rise of interest-free Islamic banking and finance, a movement that attempts to apply religious law developed in the medieval period to the modern economy. Some entire countries, including Iran, Sudan, and Pakistan, have taken steps to eradicate interest from their financial systems entirely.^{[citation needed]} 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 is prohibited, as well as making money out of money is unacceptable. All financial transactions must be asset-backed and it does not charge any "fee" for the service of lending.

Types of interest[link]

Simple interest[link]

Simple interest is calculated only on the principal amount, or on that portion of the principal amount that remains unpaid.

The amount of simple interest is calculated according to the following formula:

Failed to parse (Missing texvc executable; please see math/README to configure.): I_{simp} = r \cdot B_0 \cdot m

where r is the period interest rate (I/m), B₀ the initial balance and m the number of time periods elapsed.

To calculate the period interest rate r, one divides the interest rate I by the number of periods m.

For example, imagine that a credit card holder has an outstanding balance of $2500 and that the simple interest rate is 12.99% per annum. The interest added at the end of 3 months would be,

Failed to parse (Missing texvc executable; please see math/README to configure.): I_{simp} = \bigg( \frac{0.1299}{12} \cdot $2500 \bigg) \cdot 3 = $81.19

and they would have to pay $2581.19 to pay off the balance at this point.

If instead they make interest-only payments for each of those 3 months at the period rate r, the amount of interest paid would be,

Failed to parse (Missing texvc executable; please see math/README to configure.): I = \bigg(\frac{0.1299}{12}\cdot $2500\bigg) \cdot 3 = ($27.0625/month) \cdot 3=$81.19

Their balance at the end of 3 months would still be $2500.

In this case, the time value of money is not factored in. The steady payments have an additional cost that needs to be considered when comparing loans. For example, given a $100 principal:

• Credit card debt where $1/day is charged: 1/100 = 1%/day = 7%/week = 365%/year.
• Corporate bond where the first $3 are due after six months, and the second $3 are due at the year's end: (3+3)/100 = 6%/year.
• Certificate of deposit (GIC) where $6 is paid at the year's end: 6/100 = 6%/year.

There are two complications involved when comparing different simple interest bearing offers.

1. When rates are the same but the periods are different a direct comparison is inaccurate because of the time value of money. Paying $3 every six months costs more than $6 paid at year end so, the 6% bond cannot be 'equated' to the 6% GIC.
2. When interest is due, but not paid, does it remain 'interest payable', like the bond's $3 payment after six months or, will it be added to the balance due? In the latter case it is no longer simple interest, but compound interest.

A bank account that offers only simple interest, that money can freely be withdrawn from is unlikely, since withdrawing money and immediately depositing it again would be advantageous.

Composition of interest rates[link]

In economics, interest is considered the price of credit, therefore, it is also subject to distortions due to inflation. The nominal interest rate, which refers to the price before adjustment to inflation, is the one visible to the consumer (i.e., the interest tagged in a loan contract, credit card statement, etc.). Nominal interest is composed of the real interest rate plus inflation, among other factors. A simple formula for the nominal interest is:

Failed to parse (Missing texvc executable; please see math/README to configure.): i= r + \pi

Where i is the nominal interest, r is the real interest and Failed to parse (Missing texvc executable; please see math/README to configure.): \pi is inflation.

This formula attempts to measure the value of the interest in units of stable purchasing power. However, if this statement were true, it would imply at least two misconceptions. First, that all interest rates within an area that shares the same inflation (that is, the same country) should be the same. Second, that the lenders know the inflation for the period of time that they are going to lend the money.

One reason behind the difference between the interest that yields a treasury bond and the interest that yields a mortgage loan is the risk that the lender takes from lending money to an economic agent. In this particular case, a government is more likely to pay than a private citizen. Therefore, the interest rate charged to a private citizen is larger than the rate charged to the government.

To take into account the information asymmetry aforementioned, both the value of inflation and the real price of money are changed to their expected values resulting in the following equation:

Failed to parse (Missing texvc executable; please see math/README to configure.): i_t = r_{(t+1)} + \pi_{(t+1)} + \sigma

Here, Failed to parse (Missing texvc executable; please see math/README to configure.): i_t

is the nominal interest at the time of the loan, Failed to parse (Missing texvc executable; please see math/README to configure.): r_{(t+1)}
is the real interest expected over the period of the loan, Failed to parse (Missing texvc executable; please see math/README to configure.):  \pi_{(t+1)} 
is the inflation expected over the period of the loan and Failed to parse (Missing texvc executable; please see math/README to configure.):  \sigma 
is the representative value for the risk engaged in the operation.

Cumulative interest or return[link]

This section requires expansion.

The calculation for cumulative interest is (FV/PV)-1. It ignores the 'per year' convention and assumes compounding at every payment date. It is usually used to compare two long term opportunities.^{[citation needed]}

Other conventions and uses[link]

Exceptions:

• US and Canadian T-Bills (short term Government debt) have a different calculation for interest. Their interest is calculated as (100-P)/P where 'P' is the price paid. Instead of normalizing it to a year, the interest is prorated by the number of days 't': (365/t)*100. (See also: Day count convention). The total calculation is ((100-P)/P)*((365/t)*100). This is equivalent to calculating the price by a process called discounting at a simple interest rate.
• Corporate Bonds are most frequently payable twice yearly. The amount of interest paid is the simple interest disclosed divided by two (multiplied by the face value of debt).

Flat Rate Loans and the Rule of .78s: Some consumer loans have been structured as flat rate loans, with the loan outstanding determined by allocating the total interest across the term of the loan by using the "Rule of 78s" or "Sum of digits" method. Seventy-eight is the sum of the numbers 1 through 12, inclusive. The practice enabled quick calculations of interest in the pre-computer days. In a loan with interest calculated per the Rule of 78s, the total interest over the life of the loan is calculated as either simple or compound interest and amounts to the same as either of the above methods. Payments remain constant over the life of the loan; however, payments are allocated to interest in progressively smaller amounts. In a one-year loan, in the first month, 12/78 of all interest owed over the life of the loan is due; in the second month, 11/78; progressing to the twelfth month where only 1/78 of all interest is due. The practical effect of the Rule of 78s is to make early pay-offs of term loans more expensive. For a one year loan, approximately 3/4 of all interest due is collected by the sixth month, and pay-off of the principal then will cause the effective interest rate to be much higher than the APY used to calculate the payments. ^[8]

In 1992, the United States outlawed the use of "Rule of 78s" interest in connection with mortgage refinancing and other consumer loans over five years in term.^[9] Certain other jurisdictions have outlawed application of the Rule of 78s in certain types of loans, particularly consumer loans.^[8]

Rule of 72: The "Rule of 72" is a "quick and dirty" method for finding out how fast money doubles for a given interest rate. For example, if you have an interest rate of 6%, it will take 72/6 or 12 years for your money to double, compounding at 6%. This is an approximation that starts to break down above 10%.

Market interest rates[link]

This unreferenced section requires citations to ensure verifiability.

There are markets for investments (which include the money market, bond market, as well as retail financial institutions like banks) set interest rates. Each specific debt takes into account the following factors in determining its interest rate:

Opportunity cost[link]

Opportunity cost encompasses any other use to which the money could be put, including lending to others, investing elsewhere, holding cash (for safety, for example), and simply spending the funds.

Inflation[link]

Since the lender is deferring consumption, they will wish, as a bare minimum, to recover enough to pay the increased cost of goods due to inflation. Because future inflation is unknown, there are three ways this might be achieved:

• Charge X% interest 'plus inflation'. Many governments issue 'real-return' or 'inflation indexed' bonds. The principal amount or the interest payments are continually increased by the rate of inflation. See the discussion at real interest rate.
• Decide on the 'expected' inflation rate. This still leaves the lender exposed to the risk of 'unexpected' inflation.
• Allow the interest rate to be periodically changed. While a 'fixed interest rate' remains the same throughout the life of the debt, 'variable' or 'floating' rates can be reset. There are derivative products that allow for hedging and swaps between the two.

However interest rates are set by the market, and it happens frequently that they are insufficient to compensate for inflation: for example at times of high inflation during e.g. the oil crisis; and currently (2011) when real yields on many inflation-linked government stocks are negative.

Default[link]

There is always the risk the borrower will become bankrupt, abscond or otherwise default on the loan. The risk premium attempts to measure the integrity of the borrower, the risk of his enterprise succeeding and the security of any collateral pledged. For example, loans to developing countries have higher risk premiums than those to the US government due to the difference in creditworthiness. An operating line of credit to a business will have a higher rate than a mortgage loan.

The creditworthiness of businesses is measured by bond rating services and individual's credit scores by credit bureaus. The risks of an individual debt may have a large standard deviation of possibilities. The lender may want to cover his maximum risk, but lenders with portfolios of debt can lower the risk premium to cover just the most probable outcome.

Default Interest[link]

Default interest is the interest that a borrower would pay if the borrower will not fulfill the loan covenants. The default interest is usually much higher than the original interest since it is reflecting the aggravation in the financial risk of the borrower. The default interest compensates the lender for the added risk.

Banks tend to add default interest to the loan agreements in order to separate between different scenarios.

Deferred consumption[link]

Charging interest equal only to inflation will leave the lender with the same purchasing power, but they would prefer their own consumption sooner rather than later. There will be an interest premium of the delay. They may not want to consume, but instead would invest in another product. The possible return they could realize in competing investments will determine what interest they charge.

Length of time[link]

Shorter terms often have less risk of default and exposure to inflation because the near future is easier to predict. In these circumstances, short term interest rates are lower than longer term interest rates (an upward sloping yield curve).

Government intervention[link]

Interest rates are generally determined by the market, but government intervention - usually by a central bank - may strongly influence short-term interest rates, and is one of the main tools of monetary policy. The central bank offers to borrow (or lend) large quantities of money at a rate which they determine (sometimes this is money that they have created ex nihilo, i.e. printed) which has a major influence on supply and demand and hence on market interest rates.

Open market operations in the United States[link]

The Federal Reserve (Fed) implements monetary policy largely by targeting the federal funds rate. This is the rate that banks charge each other for overnight loans of federal funds. Federal funds are the reserves held by banks at the Fed.

Open market operations are one tool within monetary policy implemented by the Federal Reserve to steer short-term interest rates. Using the power to buy and sell treasury securities, the Open Market Desk at the Federal Reserve Bank of New York can supply the market with dollars by purchasing T-notes, hence increasing the nation's money supply. By increasing the money supply or Aggregate Supply of Funding (ASF), interest rates will fall due to the excess of dollars banks will end up with in their reserves. Excess reserves may be lent in the Fed funds market to other banks, thus driving down rates.

Interest rates and credit risk[link]

It is increasingly recognized that the business cycle, interest rates and credit risk are tightly interrelated. The Jarrow-Turnbull model was the first model of credit risk that explicitly had random interest rates at its core. Lando (2004), Darrell Duffie and Singleton (2003), and van Deventer and Imai (2003) discuss interest rates when the issuer of the interest-bearing instrument can default.

Money and inflation[link]

Loans and bonds have some of the characteristics of money and are included in the broad money supply.

National governments (provided, of course, that the country has retained its own currency) can influence interest rates and thus the supply and demand for such loans, thus altering the total of loans and bonds issued. Generally speaking, a higher real interest rate reduces the broad money supply.

Through the quantity theory of money, increases in the money supply lead to inflation. This means that interest rates can affect inflation in the future.^{[citation needed]}

Interest in mathematics[link]

It is thought that Jacob Bernoulli discovered the mathematical constant e by studying a question about compound interest.^[10] He realized that if an account that starts with $1.00 and pays say 100% interest per year, at 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 $1.00×1.5² = $2.25. Compounding quarterly yields $1.00×1.25⁴ = $2.4414…, and so on.

Bernoulli noticed that if the frequency of compounding is increased without limit, this sequence can be modeled as follows:

Failed to parse (Missing texvc executable; please see math/README to configure.): \lim_{n \rightarrow \infty} \left( 1 + \dfrac{1}{n} \right) ^n = e

,

where n is the number of times the interest is to be compounded in a year.

Formulae[link]

The balance of a loan with regular monthly payments is augmented by the monthly interest charge and decreased by the payment so

Failed to parse (Missing texvc executable; please see math/README to configure.): B_{k + 1} = \big( 1 + r \big) B_{k} - p

,

where

i = loan rate/100 = annual rate in decimal form (e.g. 10% = 0.10 The loan rate is the rate used to compute payments and balances.)

r = period rate = i/12 for monthly payments (customary usage for convenience)[1]

B₀ = initial balance (loan principal)

B_k = balance after k payments

k = balance index

p = period (monthly) payment

By repeated substitution one obtains expressions for B_k, which are linearly proportional to B₀ and p and use of the formula for the partial sum of a geometric series results in

Failed to parse (Missing texvc executable; please see math/README to configure.): B_{k} = (1 + r)^k B_{0} - \frac{(1+r)^k - 1}{r} p

A solution of this expression for p in terms of B₀ and B_n reduces to

Failed to parse (Missing texvc executable; please see math/README to configure.): p = r \Bigg[ \frac{(1+r)^{n} B_{0}-B_{n}}{(1+r)^{n}-1} \Bigg]

To find 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:

Failed to parse (Missing texvc executable; please see math/README to configure.): p=PMT(rate,num,PV,FV,) = PMT(r,n,-B_0,B_n,)\;

An interest-only payment on the current balance would be

Failed to parse (Missing texvc executable; please see math/README to configure.): p_{I}= r B

.

The total interest, I_T, paid on the loan is

Failed to parse (Missing texvc executable; please see math/README to configure.): I_{T} = np - B_{0}

.

The formulas for a regular savings program are similar but the payments are added to the balances instead of being subtracted and the formula for the payment is the negative of the one above. These formulas are only approximate since actual loan balances are affected by rounding. To avoid an underpayment at the end of the loan, the payment must be rounded up to the next cent. The final payment would then be (1+r)B_n-1.

Consider a similar loan but with a new period equal to k periods of the problem above. If r_k and p_k are the new rate and payment, we now have

Failed to parse (Missing texvc executable; please see math/README to configure.): B_{k} = B'_{0} = (1 + r_{k})B_{0} - p_{k}

.

Comparing this with the expression for B_k above we note that

Failed to parse (Missing texvc executable; please see math/README to configure.): r_{k} = (1 + r)^{k}-1

and

Failed to parse (Missing texvc executable; please see math/README to configure.): p_{k} = \frac{p}{r} r_{k}

.

The last equation allows us to define a constant that is the same for both problems,

Failed to parse (Missing texvc executable; please see math/README to configure.): B^{*} = \frac{p}{r} = \frac{p_{k}}{r_{k}}

and B_k can be written as

Failed to parse (Missing texvc executable; please see math/README to configure.): B_{k} = (1 + r_{k}) B_{0} - r_{k} B^*

.

Solving for r_k we find a formula for r_k involving known quantities and B_k, the balance after k periods,

Failed to parse (Missing texvc executable; please see math/README to configure.): r_{k} = \frac{B_{0} - B_{k}}{B^{*} - B_{0}}

Since B₀ could be any balance in the loan, the formula works for any two balances separate by k periods and can be used to compute a value for the annual interest rate.

B* is a scale invariant since it does not change with changes in the length of the period.

Rearranging the equation for B^* one gets a transformation coefficient (scale factor),

Failed to parse (Missing texvc executable; please see math/README to configure.): \lambda_{k} = \frac{p_{k}}{p} = \frac{r_{k}}{r} = \frac{(1 + r)^{k} - 1}{r} = k[1 + \frac{(k - 1)r}{2} + \cdots]

(see binomial theorem)

and we see that r and p transform in the same manner,

Failed to parse (Missing texvc executable; please see math/README to configure.): r_k=\lambda_k r\;

Failed to parse (Missing texvc executable; please see math/README to configure.): p_k=\lambda_k p\;

The change in the balance transforms likewise,

Failed to parse (Missing texvc executable; please see math/README to configure.): \Delta B_k=B'-B=(\lambda_k rB-\lambda_k p)=\lambda_k \Delta B \;

which gives an insight into the meaning of some of the coefficients found in the formulas above. The annual rate, r₁₂, assumes only one payment per year and is not an "effective" rate for monthly payments. With monthly payments the monthly interest is paid out of each payment and so should not be compounded and an annual rate of 12·r would make more sense. If one just made interest-only payments the amount paid for the year would be 12·r·B₀.

Substituting p_k = r_k B* into the equation for the B_k we get,

Failed to parse (Missing texvc executable; please see math/README to configure.): B_k=B_0-r_k(B^*-B_0)\;

Since B_n = 0 we can solve for B*,

Failed to parse (Missing texvc executable; please see math/README to configure.): B^{*} = B_{0} \bigg(\frac{1}{r_{n}} + 1 \bigg)

.

Substituting back into the formula for the B_k shows that they are a linear function of the r_k and therefore the λ_k,

Failed to parse (Missing texvc executable; please see math/README to configure.): B_k=B_0\bigg(1-\frac{r_k}{r_n}\bigg)=B_0\bigg(1-\frac{\lambda_k}{\lambda_n}\bigg)

This is the easiest way of estimating the balances if the λ_k are known. Substituting into the first formula for B_k above and solving for λ_k+1 we get,

Failed to parse (Missing texvc executable; please see math/README to configure.): \lambda_{k+1}=1+(1+r)\lambda_k\;

λ₀ and λ_n can be found using the formula for λ_k above or computing the λ_k recursively from λ₀ = 0 to λ_n.

Since p=rB* the formula for the payment reduces to,

Failed to parse (Missing texvc executable; please see math/README to configure.): p=\bigg(r+\frac{1}{\lambda_n}\bigg)B_0

and the average interest rate over the period of the loan is

Failed to parse (Missing texvc executable; please see math/README to configure.): r_{loan} = \frac{I_{T}}{nB_{0}} = r + \frac{1}{\lambda_{n}} - \frac{1}{n}

,

which is less than r if n>1.

See also[link]

Look up interest in Wiktionary, the free dictionary.

• Actuarial notation
• Promissory note
• Rate of return
• Cash accumulation equation
• Compound interest
• Credit rating agency
• Credit card interest
• Discount
• Fisher equation
• Hire purchase
• Interest expense
• Interest rate
• Leasing
• Monetary policy
• Mortgage loan
• Risk-free interest rate
• Yield curve
• Time value of money
• Simple Interest

Religion:

• Usury
• Riba

References[link]

This article includes a list of references, but its sources remain unclear because it has insufficient inline citations. Please help to improve this article by introducing more precise citations. (January 2009)

Specific references[link]

General references[link]

• Duffie, Darrell and Kenneth J. Singleton (2003). Credit Risk: Pricing, Measurement, and Management. Princeton University Press. ISBN 978-0-691-09046-7. 
• Kellison, Stephen G. (1970). The Theory of Interest. Richard D. Irwin, Inc.. Library of Congress Catalog Card No. 79-98251. 
• Lando, David (2004). Credit Risk Modeling: Theory and Applications. Princeton University Press. ISBN 978-0-691-08929-4. 
• van Deventer, Donald R. and Kenji Imai (2003). Credit Risk Models and the Basel Accords. John Wiley & Sons. ISBN 978-0-470-82091-9. 

Deepak Tiwari(Rizvi college)BBI student

External links[link]

• White Paper: More than Math, The Lost Art of Interest calculation
• Mortgages made clear Financial Services Authority (UK)
• OECD interest rate statistics
• Calculate Your Interest

• You can see a list of current interest rates at these sites:
  • World Interest Rates
  • Forex Motion
  • "Which way to pay"

This article may be expanded with text translated from the corresponding article in the Danish Wikipedia. (September 2011) Don't speak Danish? Click here to read a machine-translated version of the Danish article. Click [show] on the right to review important translation instructions before translating. Google's machine translation is a useful starting point for translations, but translators must revise errors as necessary and confirm that the translation is accurate, rather than simply copy-pasting machine-translated text into English Wikipedia. Do not translate text that appears unreliable or low-quality. If possible, verify the text with references provided in the foreign-language article. After translating, {{Translated|da|Bilal Philips}} must be added to the talk page to ensure copyright compliance. For more guidance, see Wikipedia:Translation.

Abu Ameenah Bilal Philips
Philips in August 2010
Born	Dennis Bradley Philips (1946-01-06) 6 January 1946 (age 66) Kingston, Jamaica
Education	B.A. Islamic Studies, M.A. Aqeedah, & PhD Islamic Theology
Alma mater	B.A. - Islamic University of Medina, M.A. - King Saud University, & PhD - University of Wales
Occupation	Islamic preacher
Years active	1971-present
Religion	Islam
Website
www.bilalphilips.com

Abu Ameenah Bilal Philips (born Dennis Bradley Philips on 6 January 1946 in Jamaica) is a contemporary Islamic scholar, teacher, speaker, and author, resident in Qatar.^[1][2] He appears on Peace TV, which is a 24-hour Islamic satellite TV channel broadcasting to many countries around the world.

Biography[link]

Education[link]

Philips was born on 6 January 1946^[3] in Jamaica, but grew up in Canada, where he converted to Islam in 1972. He received his B.A. degree from the Islamic University of Medina and his M.A. in Aqeedah (Islamic Theology) from the King Saud University in Riyadh, then to the University of Wales, where he completed a PhD in Islamic Theology in the early 1990s.^[4] Philips comes from a family of educators, as both his parents were teachers and his grandfather was a Christian minister and Bible scholar.^[5]

Islamic Information Center[link]

In 1994 he founded (and continues to direct) an Islamic Information Center, now known as Discover Islam, in Dubai, United Arab Emirates.^[5]

Islamic Online University[link]

The Islamic Online University has been founded by Dr. Bilal Philips as a completely tuition-free institution that is offering an online intensive, undergraduate, and graduate courses in Islamic Studies. The university offers a four year bachelor of arts degree in Islamic studies program.^[6]

The IOU was initially launched in 2001 from UAE with an offering of a few short courses. After a five year interlude, it was restarted in 2007 from Qatar with a greater offering of completely free short courses.^[7]

Controversies[link]

According to Steven Emerson, Executive Director of Investigative Project on Terrorism, he follows a strong anti-Western agenda and is connected to radical and terrorist Islamists.^[8] Bilal has made statements against suicide bombing and other terrorist tactics as un-Islamic. He has also suggested that once violent conflicts between Muslims and non-Muslims can be better solved with education.^[9]

Bilal Philips (left) and Pierre Vogel speaking on a rally in Frankfurt in 2003.

In an interview given, Philips accused the Australian authorities of "blindly following American allegations and unsubstantiated false accusations" claiming that investigations in the UK, Canada and Australia had found no evidence that he was in any way connected with terrorism.^[2] In this interview, he also pointed out that he had not entered the USA since 1995, characterizing media claims that he had been deported in 2004 as an "outright lie". Philips also called the statement that he was an "unindicted co-conspirator” in the 1993 World Trade Center bombing "really a joke", claiming that it was based on a "supposedly leaked report" of over 100 prominent Muslims who were never charged. In April 2011 he has been banned from re-entering Germany as persona non grata.^[10]

At a conference in Toronto during the city's Pride Parade on July 3, 2011, Philips briefly reiterated his view that homosexuals caught in the act should be executed in countries governed by Islamic law.^[11]

Publications[link]

Books[link]

• Fundamentals of TAWHEED (Islamic Monotheism) International Islamic Publishing House; ISBN 9960-9648-0-9^[12]
• The Evolution of Fiqh (Islamic Law & The Madh-habs) International Islamic Publishing House (Edited by Bradley Philips); ISBN 9960-672-86-7^[13]
• True Message of Jesus Christ Islamic Book Services 2006; ISBN 81-7231-360-8^[14]
• Purpose of Creation 84pp, Islamic Book Services 2002; ISBN 81-7231-358-6^[15]
• Funeral Rites International Islamic Publishing House; ASIN 9960850846^[16]
• Polygamy in Islam Islamic Book Services; ISBN 81-7231-715-8^[17]
• Islamic Studies Al-Basheer 2002; ISBN 1-898649-19-7^[18]

Videos[link]

• Sundry videos at LightUponLight.com

See also[link]

• List of Da'ees
• Dawah
• Islam in Canada
• Zakir Naik
• Jamaal al-Din M. Zarabozo
• Muhammad bin Jamil Zeno

References[link]

External links[link]

• Bilal Philips' official website
• Bilal Philips' Blog
• Bilal Philips audio and video lectures
• Interview with Bilal Philips on Famous Muslims
• Lecture: Hardening of the Heart
• Bilal Philips' Islamic Online University

J. J. Abrams
Abrams at the Time 100 Gala in Manhattan, May 4, 2010
Born	Jeffrey Jacob Abrams (1966-06-27) June 27, 1966 (age 45) New York City, New York, U.S.
Residence	Los Angeles, California, U.S.
Ethnicity	German, Jewish
Occupation	Film and television producer, director, screenwriter, actor and composer.
Years active	1990–present
Spouse	Katie McGrath
Children	3

Jeffrey Jacob "J. J." Abrams (born June 27, 1966) is an American film and television producer, screenwriter, director, actor, and composer.

He is well known for his work in the genres of action, drama, and science fiction. He wrote and produced feature films before co-creating the television series Felicity (1998–2002). He also created Alias (2001–2006) and co-created Lost (2004–2010), Fringe (2008–present), Undercovers (2010) and produced the television series Person of Interest (2011–present) and Alcatraz (2012). Abrams directed the films Mission: Impossible III (2006), Star Trek (2009), and Super 8 (2011), and produced the films Cloverfield (2008), Morning Glory (2010) and Mission: Impossible – Ghost Protocol (2011). Many of the films he directed/produced are by Paramount, while his television series were co-produced by either Warner Bros. or ABC Studios.

Early life[link]

Abrams was born in New York City and raised in Los Angeles, where he attended Palisades Charter High School. He is the son of television producer Gerald W. Abrams and executive producer Carol Abrams. Abrams is Jewish,^[1] and attended Sarah Lawrence College.^[2]

Career[link]

Abrams's first job in the movie business started when he was 16 when he wrote music for Don Dohler's film Nightbeast. During his senior year at college, he teamed with Jill Mazursky to write a feature film treatment. Purchased by Touchstone Pictures, the treatment was the basis for Taking Care of Business, Abrams's first produced film, which starred Charles Grodin and Jim Belushi. He followed that up with Regarding Henry, starring Harrison Ford, and Forever Young, starring Mel Gibson.

Abrams collaborated with producer Jerry Bruckheimer and director Michael Bay on the 1998 film, Armageddon. That same year, he made his first foray into television with Felicity, which ran for four seasons on The WB Network, serving as the show's co-creator (with Matt Reeves) and executive producer. He also composed its opening theme music.

Under his production company Bad Robot, which he founded with Bryan Burk in 2001,^[3] Abrams created and executive-produced ABC's Alias and is co-creator (along with Damon Lindelof and Jeffrey Lieber) and executive producer of Lost. He later co-wrote the teleplay for Lost's third season premiere "A Tale of Two Cities". As with Felicity, Abrams also composed the opening theme music for Alias and Lost.

In 2001, Abrams co-wrote and produced the thriller Joy Ride, and wrote an unproduced screenplay for a fifth Superman film in 2002.

In 2006, he served as executive producer of What About Brian and Six Degrees, also on ABC. Abrams directed and wrote the two-part pilot for Lost and remained active producer for the first half of the season. That same year he made his feature directorial debut in 2006 with Mission: Impossible III, starring Tom Cruise.

Abrams at the San Diego Comic-Con International in July 2010

Abrams spoke at the TED conference in 2007.^[4]

In 2008, Abrams produced the monster movie, Cloverfield.^[5] In 2009, he directed the science fiction film Star Trek,^[6] which he produced with Lost co-creator Damon Lindelof. While it was speculated that they would be writing and producing an adaptation of Stephen King's The Dark Tower series of novels, they publicly stated in November 2009 that they were no longer looking to take on that project.^[7]

In 2008, he co-created, executive produced, and co-wrote (along with Roberto Orci and Alex Kurtzman) the FOX science-fiction series Fringe, for which he composed the theme music for as well.

Abrams is featured in the 2009 MTV Movie Awards 1980s-style digital short "Cool Guys Don't Look at Explosions", with Andy Samberg and Will Ferrell, in which he plays a keyboard solo.

The NBC network picked up Abrams's Undercovers as its first new drama series for the 2010–11 season.^[8] However, it was subsequently cancelled by NBC in November 2010.

He wrote and directed the Paramount supernatural blockbuster Super 8, while co-producing with Steven Spielberg and Bryan Burk; it was released on June 10, 2011.^[9]

Abrams is currently directing the untitled sequel to Star Trek. The film is scheduled for release in May 2013.^[10]

Under development (due in 2013^[11]) is Abrams' film with Paramount Pictures and Bad Robot Productions, Mystery on Fifth Avenue. It is based on the New York Times article "Mystery on Fifth Avenue" about the renovation of an 8.5 million dollar co-op, a division of property originally owned by E.F. Hutton and Marjorie Merriweather Post. In 2008, it was widely reported Abrams purchased the rights to the Times article for six figures^[12], and enlisted comedy writers Maya Forbes and Wally Wolodarsky to write the adaptation. According to the article, a wealthy couple Steven B. Klinsky and Maureen Sherry purchased the apartment in 2003 and live there with their four children. Soon after purchasing the apartment, they hired young architectural designer Eric Clough, who devised an elaborately clever "scavenger hunt" built into the apartment that involved dozens of historical figures, a fictional book and a soundtrack, woven throughout the apartment in puzzles, riddles, secret panels, compartments, and hidden codes, without the couple's knowledge. The family didn't discover the embedded mystery until months after moving into the apartment. ^[13][14] After Abrams purchased the article, Clough left him an encrypted message in the wall tiles of a Christian Louboutin shoe store he designed in West Hollywood.^[15]

Personal life[link]

Abrams is married to public relations exec Katie McGrath and has three children: sons August and Henry and daughter Gracie.^[2][16] He resides in Pacific Palisades, Los Angeles, California, United States.^[17][18]

Campaigns he has contributed to include those of Bill Clinton, Barack Obama, Bill Bradley, John Edwards, Hillary Clinton, Bob Casey, Jr., Mark Udall, Harry Reid, Russ Feingold, Patrick J. Kennedy, and Tim Kaine. However, he has also donated $2,000 to the Republican Robert Vasquez.^[19]

Filmography[link]

Feature credits[link]

Television credits[link]

Awards and nominations[link]

References[link]

External links[link]

Wikimedia Commons has media related to: J. J. Abrams

• J. J. Abrams at the Internet Movie Database
• J. J. Abrams at AllRovi
• J.J. Abrams at Memory Alpha (a Star Trek wiki)
• J.J. Abrams at Lostpedia
• J. J. Abrams at TED Conferences
• J. J. Abrams on Charlie Rose
• Works by or about J. J. Abrams in libraries (WorldCat catalog)
• J. J. Abrams collected news and commentary at The New York Times