For example, if the loan is 654.38+100000 yuan and the interest is 4%, the interest for one month is 40 yuan. If the monthly interest rate of 0.4% is converted into annual interest rate, and 0.4%* 12=4.8%, the loan is 1 ten thousand yuan, the loan term is 1 year, the repayment interest of equal principal and interest is 26 1.9 yuan, and the repayment interest of average capital is 260 yuan.
Interest is the use fee of money in a certain period of time, and it refers to the reward that money holders (creditors) get from borrowers (debtors) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds. Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit.