The so-called "a little profit" is a folk idiom, which can be roughly understood as lending 1 yuan to 4 cents interest, which is what banks usually say: 4%, monthly interest rate 4% = monthly interest rate 4%. If calculated by simple interest, the monthly interest rate is 4% = the annual interest rate is 48%. If calculated by compound interest, the monthly interest rate is 4% = the annual interest rate is 60%.

Is the interest of 14 cents a usury?

Annual interest rate calculation of 4 points: 4%* 12=48%. Calculation of annual interest rate of banks: 5.6%*4=22.4%. Under normal circumstances, the interest of 4 cents refers to the monthly interest, and both parties can freely agree on the interest of private lending, as long as the interest rate agreed by both parties does not exceed 24% of the annual interest rate, it is protected by law. Moreover, the monthly interest rate of 4 points is 48%, which obviously exceeds the annual interest rate of 36%, and it is definitely a usury.

Second, how to calculate the interest of one point?

One cent interest This is the folk expression habit of interest rate. If the monthly interest rate is one point, it is 1%, which means one month 100 yuan, 1 yuan interest. If the annual interest rate is one point, it is 10%, that is, 100 yuan, and the annual interest is 10 yuan. If you borrow 10000 yuan, the interest for one month is 10000 times 1% which is equal to 10000 yuan; if you borrow 10000 yuan, the interest for one year is10000 times. According to the current interest rate standard, Ping An Bank loan interest 1-3 years (including 3 years) is 6.40. In case of loan, the benchmark interest rate will be given to you, and it will be paid in one lump sum after 2 years. 160000 times 6.4% equals 20480 yuan, 12800 yuan. People's Bank of China, if the interest of a dime is simply 1%, it is generally the monthly interest. If the monthly interest is one point, the interest of 85000 times 1% times 12 is equal to 10200.

Third, the calculation method and definition of interest

Interest = principal × interest rate× deposit period (i.e. time). As the saying goes, four-point interest is 4% per year (or month or day). Abstract interest point refers to the value-added amount brought by monetary funds injected into the real economy and returned. Generally speaking, interest refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for using the borrowed currency or capital. Also known as the symmetry of sub-fund and parent fund (principal).