Daily interest is expressed as a few ten thousandths of the principal, which is usually called a few cents a day. For example, the daily interest rate 1% means the principal 1 yuan and the daily interest rate 1%. (1% =0.00 1 yuan, 10 cents =0.000 1 yuan).

Conversion formula of daily interest rate, annual interest rate and monthly interest rate:

Daily interest rate (0/000)= annual interest rate (0/0) ÷ 360;

Monthly interest rate (0/00)= annual interest rate (0/0)÷ 12.

Monthly interest rate = daily interest rate ×30

Annual interest rate = monthly interest rate × 12

Interest = interest product × daily interest rate

Extended data:

Interest rate is the price that the borrower needs to pay for the money borrowed, and it is also the return that the lender gets by delaying his own consumption and lending it to the borrower. The interest rate is usually calculated by the percentage of one-year interest to the principal.

benchmark interest rate

The benchmark interest rate is a universal reference interest rate in the financial market, and other interest rate levels or financial asset prices can be determined according to this benchmark interest rate level.

Benchmark interest rate is one of the important prerequisites for interest rate marketization. Under the condition of interest rate marketization, financiers need a universally recognized interest rate level as a reference to measure financing costs and investors to calculate investment returns. Therefore, the benchmark interest rate is the core of the interest rate marketization mechanism.

Baidu encyclopedia-daily interest rate

Baidu encyclopedia-interest rate