An interest rate of 5% means that the loan interest rate is 0.5%, and generally this interest rate is a monthly interest rate. So with an interest of 5%, a loan of 100,000 yuan, and the loan period is 1 year, the interest generated is 100,000 * 0.5% * 12 = 6,000 yuan. In addition, the general interest rate of 5% generally occurs in private loans, and bank loans will directly tell the borrower the specific interest rate.

If the monthly interest rate is 5%, it means that the monthly interest rate is 0.5%. At this time, the annual interest rate is 0.5%*12=6%, and the interest to be repaid in one year = loan amount * loan interest rate * time = 100000* 6%*1=6,000 yuan.

If the annual interest rate is 5%, it means that the annual interest rate is 5%, and the interest to be repaid in one year = 100,000*5% = 5,000 yuan.

The above-mentioned calculation process has a difference of 1,000 yuan in interest per year, so be sure to check clearly in the loan contract whether the annual interest rate or the monthly interest rate is agreed before 5%. If there is no specific agreement, the monthly interest rate will be based on folk customs. . That means you have to pay 6,000 yuan in interest per year.

Percent is the unit of interest rate. For annual interest rates, one cent is one percent, and for monthly interest rates, one cent is one thousandth. If it is an annual interest rate, the interest rate of 5% is an interest rate of 5%. If it is a monthly interest rate, the interest rate of 5% is an interest rate of 0.5%.

When using centimeters and minutes, you must pay attention to whether the previous time is a day, month or year. Different time contexts have different percentages! Please note that in the IOU, the most likely source of disputes is to only write "interest 1 cent" without indicating the monthly interest or the annual interest. The annual interest is understood to be 10%, and the monthly interest is 1% (converted to annual interest, which is 12%). , there is a 2% difference.

The relationship between cents and cents

Cents and cents are simple names for interest rates. Generally speaking, it is how many cents or cents the interest rate is. Many users often say how many cents or cents the interest rate is. In fact, It is a wrong statement, but what is special after all is that although the statement of interest rate is not correct, users can understand each other. The reason is that in the concepts of many users, interest rate and interest are both "conventional". Same understood.

Cent refers to the monthly interest rate. Taking the monthly interest rate of 1% as an example, it can be described as a monthly interest rate of 1 cent.

Percent refers to the monthly interest rate. Taking the monthly interest rate of 2‰ as an example, it can be described as a monthly interest rate of 2%.

The conversion relationship between cents and cents is, 1 cent = 10 cents.

Therefore, centimeter can also be expressed as a percentage, that is, taking a monthly interest rate of 0.2% as an example, it can also be expressed as a monthly interest rate of 2 cents.

Interest = loan amount × loan interest rate × loan time.