The central bank is the dominant financial center of the country and an important tool for the state to intervene and regulate the development of the national economy. Responsible for the formulation and implementation of national monetary and credit policies, with unique currency issuance rights and financial supervision rights.

As the maker and executor of the national monetary policy, the central bank conducts purposeful and targeted regulation and control of the national monetary credit activities through financial means, thus affecting the national macro-economy, promoting the healthy development of the entire national economy and achieving its expected monetary policy objectives.

Extended data:

Latest method

1. The calculation formula of equal principal and interest loan: monthly repayment amount (referred to as monthly principal and interest) = loan principal x monthly interest rate ×[( 1+ monthly interest rate) repayment months ][( 1+ monthly interest rate) repayment months ]- 1.

2. Calculation formula of average capital loan: monthly repayment amount (referred to as monthly principal and interest) = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) x monthly interest rate.

3. The latest loan calculator, and the difference between the two loan interest calculation methods.

These two calculation methods are different. The loan with equal principal and interest is calculated according to compound interest. At the settlement time of each repayment, the interest generated by the remaining principal will be calculated together with the remaining principal (loan balance), that is to say, the outstanding interest will also be calculated, which seems to be more severe than "rolling interest". In foreign countries, matching principal and interest loan is recognized as a loan method suitable for the interests of lenders.

However, the average capital loan uses a simple interest rate method to calculate interest. At the settlement time of each repayment, only the remaining principal (loan balance) is calculated, which means that the interest on outstanding loans is not calculated together with the outstanding loan balance, only the principal is calculated.

However, the longer the loan cycle, the more interest will be generated by matching principal and interest loans, rather than the interest generated by average capital loans. Therefore, if the borrower cannot adjust (or choose) the repayment method, the borrower with longer loan term should choose the average capital loan.

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