Annualized interest rate refers to the interest rate discounted to the whole year through the inherent rate of return of products.
On March 3, 20021March 3 1 day, the People's Bank of China issued an announcement to make relevant provisions on the annualized interest rate of loan products. When marketing through websites, mobile phone applications, posters and other channels, institutions engaged in loan business should show the annualized interest rate to borrowers in an obvious way. Institutions engaged in loan business include, but are not limited to, deposit-taking financial institutions, auto finance companies, consumer finance companies, microfinance companies and Internet platforms that provide advertising or display platforms for loan business.
The annualized loan interest rate is calculated according to the ratio of all loan fees charged by the borrower to the actual loan principal, and converted into annualized form. The annualized loan interest rate can be calculated by compound interest or simple interest method: compound interest is calculated by internal rate of return; If the simple interest calculation method is adopted, it should be explained that it is simple interest.
The annual interest rate is different from the annualized interest rate.
The annual interest rate refers to the deposit interest rate for one year. 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 in a certain period of time. Taking the third phase as an example, the monthly handling fee is 93 yuan, and the converted adult handling fee is116 yuan (93* 12 yuan), so the annual interest rate is11.16% (/. The concept of annualized interest rate is complicated. Simply put, the annualized interest rate is the interest rate (c) that makes all the money you want to pay back in the future (a) equal to the present value (a) of the loan amount (b), which is the real interest rate of the loan.
The annual interest rate is the annual interest rate, which is simply the ratio of the actual interest to the principal after we have saved money for one year. If your principal is 10000 yuan and the annual interest rate is 4%, then the interest earned after 1 year is 400 yuan.
Annualized interest rate refers to the interest rate discounted to the whole year through the inherent rate of return of products. The annualized interest rate is the annualized display of short-term income. It converts the current interest rate (daily interest rate, monthly interest rate) into annual interest rate, assuming that our investment period is the income we will get after one year. This is an estimated rate of return. The annualized interest rate will be equal to the annual interest rate only if the future income remains unchanged. However, annualized income tends to fluctuate.