I want to borrow 20 thousand, with interest of one point. How much is the interest for two years?

1.6% refers to the monthly interest rate, which means that the monthly interest rate is 1.6%.

1. For private loans, interest is calculated with simple interest. Bank deposit is a simple method of interest calculation.

Interest = principal × interest rate × term

Two-year interest =20000× 1.6%×24= 7680 yuan.

2. usury companies use compound interest to calculate interest, which is compound interest.

The formula for calculating interest by compound interest is:

F=P×( 1+i)N (power) f: the final compound interest value.

headmaster

One: Interest rate

N: integer multiple of interest rate acquisition time

Sum of principal and interest = 20,000× (1+1.6%) 24 = 29,273.79 yuan.

Two-year interest =29273.79-20000= 9273.79 yuan.