1. annualized interest rate refers to the interest rate discounted to the whole year through the inherent rate of return of products. On March 3, 20021March 3 1 day, the People's Bank of China issued an announcement to make relevant provisions on the annualized interest rate of loan products. All institutions engaged in loan business should show the annualized interest rate to borrowers in an obvious way when marketing through websites, mobile applications, posters and other channels. Institutions engaged in loan business include, but are not limited to, deposit-taking financial institutions, auto finance companies, consumer finance companies, microfinance companies and Internet platforms that provide advertising or display platforms for loan business.
Two, the annualized interest rate of the loan should be calculated according to the proportion of all the loan fees charged to the borrower and the actual loan principal occupied, and converted into an annualized form. The annualized loan interest rate can be calculated by compound interest or simple interest method: compound interest is calculated by internal rate of return; If the simple interest calculation method is adopted, it should be explained that it is simple interest.
3. Interest rate refers to the ratio of the amount of interest to the amount of borrowed funds (principal) in a certain period. Interest rate is the main factor that determines the capital cost of enterprises, and it is also the decisive factor for enterprises to raise funds and invest. To study the financial environment, we must pay attention to the current situation and changing trend of interest rates. Interest rate refers to the ratio of the interest amount due in each period to the par value of the borrowed, deposited or borrowed amount (called the total principal). The total interest of the lent or borrowed amount depends on the total principal, interest rate, compound interest frequency and the length of time of lending, deposit or borrowing. 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 its consumption and lending it to the borrower. The interest rate is usually calculated as a percentage of one-year interest to principal.
4. In modern economy, interest rate, as the price of capital, is not only restricted by many factors in economic society, but also the change of interest rate has great influence on the whole economy. Interest rate determination theory has also experienced the evolution and development of classical interest rate theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and contemporary dynamic interest rate model.