Understand first: one centimeter = 0. 1 minute = 0.0 1 hair (angle) = 0.00 1 yuan.

That is, the interest rate is percent (interest rate), and the key points for calculating the interest generated by the loan are: converting the unit percentage into the unit yuan.

Formula: interest = principal × several centimeters× 0.001.

For example, a loan from a bank 10000 yuan, with a monthly interest rate of 5%.

Then the interest calculation formula for one month is: 10000× 5× 0.005438+0 = 50 yuan.

Extended answer:

Interest: refers to the remuneration received by the currency holder (creditor) from the borrower (debtor) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds.

Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit.

Calculation formula of interest: interest = principal × interest rate × deposit term.