The monthly interest rate is 1, that is, the monthly interest rate is 1, that is, the annual interest rate is 12. Suppose Xiao Ming borrows 10,000 yuan. The monthly interest rate is 1 cent, and the loan time is 1 month. According to interest = principal * interest rate * time, the interest that Xiao Ming needs to pay is equal to 10,000 yuan * 1 * 1 = 100.

What is the interest rate

In real economic life, interest rate generally refers to the ratio of interest to principal. For a borrower, under a certain interest rate, the amount of interest received mainly depends on the borrower's loan principal. The size of the loan and the length of the repayment period. According to the actual calculation period, the interest rate can be divided into three forms: annual interest rate, monthly interest rate and daily interest rate, which can be converted into each other. In the actual economic market, the interest rate is limited by many aspects, but once Changes in interest rates will cause turmoil in the entire economic market. For a country, interest rates are mainly controlled by the central bank, and in the United States, the federal reserve government.