CEVAP:

The Capital stands for machinery, equipment, buildings and other tools which are used in the production of goods and services. In economics, as a factor of production, the capital refers to the physical capital, not to the financial capital. Although money is not a factor of production, firms often use credits to buy or hire the capital they use for production, and pay interest in return. Even if they use their own funds, the opportunity cost of using them is the interest foregone. So, the compensation for the use of capital is interest.