Rents and interest are rewards to

Rents and interest are rewards to land and capital respectively. Rent is a payment made for the use of land or any other natural resource. It is the income earned by the owner of the land or the natural resource for allowing someone else to use it. Interest, on the other hand, is the payment made for the use of capital. It is the compensation paid to the lender for the use of their funds or money. The lender may be an individual, a bank or any other financial institution that provides loans or credit to borrowers. Therefore, the rewards of rents and interest are related to the factors of production land and capital, respectively.