If the annual interest rate of bank loans is 5%, if the interest is calculated according to the loan days, then according to the calculation formula: the loan interest is equal to the loan amount multiplied by the loan interest rate multiplied by the loan days. Assuming a loan of 1 10,000 yuan, the interest generated by the loan for one year is: 10000 times 5% times 1=500.

The annual interest rate of the loan is 5%, which is equivalent to the borrower borrowing 10000 yuan for one year, and the interest generated is 500 yuan. Interest calculation formula: interest is equal to the loan principal multiplied by the loan interest rate multiplied by the time. The loan interest rate and time unit here must be the same. For example, when the loan interest rate is the annual interest rate, the time must be calculated on an annual basis. If the loan interest rate is monthly, the time must be month.