One-cent interest rate usually refers to the monthly interest rate 1%, and the corresponding annual interest rate is 12%, but if one-cent interest rate refers to the annual interest rate 10%. One cent is a common expression of interest rate in private lending, and the meaning of "cent" in China's dictionary is the meaning of interest rate. Although a dividend is usually the form of monthly interest rate, borrowers should also clearly understand the interest rate calculation cycle when borrowing money. Daily interest rate, monthly interest rate and annual interest rate correspond to different interest rates.

Factors that generate interest

1. Time preference: Because the loan will make the lender have to delay the use of part of the money, people usually prefer the goods now rather than delayed, so there will be interest;

2. Inflation expectation: As the economy itself is bound to experience inflation, in order to offset the impact of inflation, loan interest is used to make up for it;

3. Alternative investment: the lender's borrowing is equivalent to losing other investment opportunities, so it charges a certain interest, not other investments;

4. Investment risk: If the borrower goes bankrupt, the borrower can get some compensation through interest;

5. Liquidity preference: People prefer assets with strong liquidity, and the lost liquidity is compensated by interest.