Five ten thousandths of a percent interest is 0.05% per day at five ten thousandths of a percent interest.

Interest = principal x interest rate x time

Interest for a day = 10,000 x 0.05% = $5

Interest for a month = 10,000 x 0.05% x 30 (or 31) = $150 (or $155).

Depending on the nature of banking business can be categorized into interest receivable from banks and interest payable by banks.

Interest receivable is the payment that a bank receives from a borrower for lending the money to the borrower; it is the price that the borrower must pay for the use of the money; and it is part of the bank's profit.

Interest payable is the remuneration that a bank receives from a depositor for taking a deposit; it is the consideration that the bank must pay for taking a deposit and is part of the bank's cost.

Interest as the price of funds used in the operation of the market economy plays a very important role, mainly manifested in the following aspects:

Functions affecting the behavior of enterprises

Interest as the cost of funds used by enterprises has a direct impact on the level of economic efficiency of enterprises. Enterprises in order to reduce costs and enhance efficiency, we must do everything possible to reduce the amount of capital occupation, while in the financing process of various ways to raise funds for cost comparisons. If the enterprises in the whole society take the saving of interest expenses as a common behavior pattern, then the efficiency of economic growth will surely be improved.

Functions affecting residents' asset selection behavior

Asset selection behavior emerges under the conditions of rising real income levels and increasing savings ratios of Chinese residents. The increase in financial instruments provides an objective basis for residents' asset selection behavior, while interest income is the main trigger for residents' asset selection behavior. The resident sector attaches importance to interest income and spontaneous generation of asset selection behavior, whether on the macroeconomic regulation or the reconstruction of the micro-foundation has produced a non-negligible impact.

Baidu Encyclopedia-Interest