When we talk about 2 cents and 4% interest, we actually mean 2.4% monthly interest. For example, if you borrow 10000 yuan, the monthly interest is calculated as 10000 yuan multiplied by 2.4%, that is, 10000*0.024=240 yuan. If the calculation method of annual and monthly compound interest is not adopted, then the annual interest is 240 yuan times 12 months, totaling 2880 yuan, which is relatively high.

The calculation of interest is straightforward, and the monthly interest is equal to the loan amount multiplied by the monthly interest rate. For example, if the loan is 200,000 yuan, the monthly interest rate is 0.4%, and the monthly interest rate is 200,000 * 0.004 = 800 yuan. The essence of interest is the return obtained by the owner of the fund, such as 10 thousand principal. Annual interest rate 1% means annual income 100 yuan, monthly interest rate 1% is monthly 10 yuan, and daily interest rate 1% is equivalent to daily 1 yuan. The formula is usually used in calculation: interest = principal * interest rate * deposit period (expressed in percentage).

In the traditional interest unit in China, 1 is equal to 1%, and 1% is one tenth of 1. Therefore, the calculation of interest is not only applicable to loans, but also widely used in various financial transactions, reflecting the time value and appreciation potential of funds.