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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. Assuming that the return period of a wealth management product is one year and the rate of return is b, the annualized interest rate is r = (1+b) A- 1. The annualized interest rate shall be calculated according to the ratio of all loan fees charged by the borrower to the loan principal actually occupied, and converted into 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.
2. Credit card annual interest rate involves several different APR concepts: multi-year interest rate, punitive annual interest rate, new customer annual interest rate, deferred annual interest rate, fixed and variable annual interest rate, which are explained in turn as follows: multi-year interest rate multi-year interest rate multi-year interest rate multi-year interest rate: A credit card can have multiple APRs. One APR is used for purchasing, one is used for withdrawing advance payment, and the other is used for transferring income and expenditure. The annual interest rate for recovering advance payment and transferring income and expenditure is usually higher than the annual interest rate for purchasing. For example, buy 14%, advance receipt 18%, transfer revenue and expenditure 19%.
3. Punitive annual interest rate: If you pay late, the annual interest rate will rise. For example, the terms of your credit card will say, "If the payment is deferred twice within half a year and received more than 10 days later than the scheduled date, you will be informed to use the punitive annual interest rate." Most repayment methods are fixed principal and handling fee every month after installment, which is the repayment method of equal principal and interest in mortgage.
4. The formula of "equal principal and interest" is always factorial and can't be worked out with a pen, so we randomly found a "mortgage calculator" on the Internet and set our total loan amount as 10000 yuan and 12 for one year. We find that when the annualized interest rate is set to 13, the interest rate is 7 18 yuan. That is to say, when ten thousand installments are divided into 12 installments and the interest paid in each installment is 0.6%, the actual annualized rate is 13%. Actual annualized interest rate = nominal annualized interest rate ×2- 1. In fact, credit card installment payment is a convenient but not wise way to lend money to everyone in most cases. During the Chinese New Year, I have a relatively low nominal annualized rate of 4.2%. It seems that credit cards are only convenient to use, not cheap.