The loan interest shall be determined according to the loan contract interest rate signed by banks and other financial institutions as lenders. Both parties can only negotiate interest rates within the upper and lower limits stipulated by the People's Bank of China. If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, and vice versa. The factors that determine loan interest include loan amount, loan term and loan interest rate.
Both borrowers and borrowers shall collect or pay interest on schedule in accordance with the loan contract and the provisions of the People's Bank of China on interest calculation. If the extension period and the original period reach the new interest rate level, the interest rate at the new term level will be charged from the date of extension. Penalty interest is charged for overdue loans according to regulations.
The annualized rate of return refers to the rate of return obtained by investing for one year.
Annualized rate of return = [(investment income/principal)/investment days ]*365× 100%
Annualized rate of return = principal × annualized rate of return
Actual income = principal × annualized rate of return × investment days /365
The difference between ...
The annual rate of return is the actual rate of return of an investment within one year.
On the other hand, the annualized rate of return is the return on investment (usually used by money funds) within a period of time (for example, 7 days), assuming that one year is at this level. With the change of annualized rate of return, annualized rate of return is not necessarily the same as annualized rate of return.
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For example, if a bank sells wealth management products, the so-called annualized rate of return of 9 1 day is 3. 1%, then if you buy 1 10,000 yuan, the interest you can actually get is 1 10,000 yuan * 3.1%* 91. In addition, it should be noted that the wealth management products of ordinary banks do not bear interest on the same day as ordinary deposits and return the principal and interest at maturity. Wealth management products have subscription period and liquidation period. The principal during this period does not calculate the income or only the current income. For example, if the subscription period of a wealth management product is 5 days and the repayment period between maturity dates is 5 days, then your actual capital occupation is 10 days. The actual annualized rate of return of funds is only 772.88 * 365/(101*100000) = 2.79%. Assuming that the actual annualized rate of return of funds is y, we can get the equation100000 * (91+10) * y/365 = 772.88, and y=2.79%. The absolute income is 772.88/100000 = 0.7728%.
For long-term wealth management products, the subscription period and settlement period can be ignored, but for short-term wealth management products within 7 days or 1 month, this time has a great impact. For example, the annualized rate of return of a bank's 7-day wealth management product is 1.7%, but it takes at least 8 days. 1.7%*7/8= 1.48%, which is basically the same as the bank's 7-day notice deposit. The bank's notice deposit is much more convenient, stable and reliable than ordinary high-risk wealth management products. So when you look at the annualized rate of return, you will never just look at the figures it claims, but at the actual income figures.
Seven-day annualized rate of return
Under different income carry-over methods, the calculation formula of 7-day annualized rate of return should also be different. Money market funds have two kinds of income carry-over, one is daily dividend, which is carried over monthly, which is equivalent to daily simple interest and monthly compound interest; The other is daily dividend, which is equivalent to daily compound interest, in which the simple interest formula is (∑ RI/7 )× 365/1000×100%, and the compound interest formula is ∏( 1+Ri/ 10000).
It can be seen that the 7-day annual rate of return is calculated according to the 7-day income, and the 30-day annual rate of return is calculated according to the latest 1 month income.
The establishment of the index is mainly to provide investors with more intuitive data for investors to compare the income of money funds with other investment products for reference. In this measure, the income of the last seven days is determined by seven variables, so the seven same income does not mean that the net income of the seven daily funds used to calculate them is exactly the same.