This paper will introduce you to the methods of interest calculation and interest rate calculation to help you better understand the calculation method of loan interest.

Interest calculation

Through simple subtraction, we know that the part of the loan amount exceeding 8,000 yuan is 228 yuan. Considering the discount of 5%, the actual interest paid is 240 yuan.

Interest rate calculation

If 240 yuan interest is further divided by the original loan amount of 8,000 yuan, we get the interest rate of 0.03, which is 3% after conversion into percentage.