4.25% is generally the annual interest rate. The formula for calculating interest at the annual interest rate of 4.25% is: principal * annual interest rate * loan term (year). For example, Mr. A borrows 50,000 yuan, with the annual interest rate of 4.25%, the loan term is 1 year, and the calculated total interest is 1 year. Generally, there are two loan repayment methods: equal principal and interest and average capital, so the total interest of equal principal and interest repayment is 1 185.94, and the total interest of equal principal repayment is 1 178. 13.

If the interest is calculated according to the formula, it is 50000 * 4.25% *1= 2125 yuan.

The annual interest rate refers to the one-year deposit rate. The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal within a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage.

When the economic development is in the growth stage, the investment opportunities of banks increase, the demand for loanable funds increases and interest rates rise; On the other hand, when the level of economic development is low and the society is in depression, banks' willingness to invest decreases, so the demand for loanable funds naturally decreases and the market interest rate is generally low.

The annual interest rate is the one-year deposit rate. Interest rate is the ratio of interest amount to deposit principal or loan principal within a certain period. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage.

When the economic development is in the growth stage, the investment opportunities of banks increase, the demand for loanable funds increases and interest rates rise; On the other hand, when the level of economic development is low and the society is in depression, banks' willingness to invest decreases, so the demand for loanable funds naturally decreases and the market interest rate is generally low.

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.