1. The interest period is used to express the time unit for calculating interest. Interest is divided into simple interest and compound interest. Interest is generally calculated on an annual basis, but it can also be calculated on a period not equal to one year. Such as XX years, XX months, XX days, etc. Unless otherwise specified, the interest period is 1 year.
for example, an enterprise borrows 1, yuan from a finance company and pays it back three years later. The two sides agreed on an annual interest rate of 12%. Interest is calculated once every six months. Then, the loan term of this loan is 3 years, and the interest period is half a year. Interest is divided into simple interest and compound interest. Interest is generally calculated on an annual basis, but it can also be calculated on a period not equal to one year. The interest period in engineering economics, such as compound interest once a month and once a quarter, is the so-called interest period, which can also be interpreted as the calculation interval of interest. Interest period interest rate = annual interest rate ÷ interest times in one year.
2. The collection and payment cycle refers to the inflow and outflow time interval of cash flow. For example, you need to pay a tuition fee of 1 yuan every six months, which is called the fund collection and payment cycle; Interest period refers to the time unit for calculating interest.
Extended information:
With the beginning of the interest-bearing cycle in the new year, the beneficial effects of interest rate cuts for many times last year will also be officially released. At present, there are three ways to adjust the interest rate of bank mortgage:
One is to adjust the interest rate in the following year, and after the adjustment of bank interest rate, the new interest rate will be implemented on January 1 of the following year;
second, according to the annual adjustment, the interest rate will be adjusted after one year from the lender's loan date;
the third is to adjust the interest rate in the next month, that is, to implement the new interest rate level in the next month after the interest rate adjustment.
References: Baidu Encyclopedia-Interest Period
People's Daily-Legal Daily: Correcting the Full Interest of Credit Cards-Views