Taking the interest rate of 1.75% as an example, the lump sum deposit of 654.38+ten thousand yuan for one year is1.75 yuan (different banks have different interest rates, but the interest formula is the same: "interest = principal * interest rate * interest period").

For example, 65438+ ten thousand yuan is deposited in the bank 1 year, with the annual interest rate of 1.75%, and the corresponding interest can be obtained at maturity, that is,100000 *1.75% *1750 yuan.

Two common loan repayment methods:

1, average capital

During the repayment period, the average capital divides the total loan into equal parts, and repays the same amount of principal and the interest generated by the remaining loans in that month every month. In this way, because the monthly repayment amount is fixed and the interest is getting less and less, the borrower is under great pressure to repay at first, but as time goes on, the monthly repayment amount is getting less and less.

2. Equal principal and interest

Matching principal and interest refers to repaying the same amount of loans (including principal and interest) every month during the repayment period. Equal principal and interest and average capital are not the same concept. Although the monthly repayment amount may be lower than that in average capital at the beginning, the interest paid in the end will be higher than that in average capital, which is also a method often used by banks.

The difference between average capital and equal principal and interest:

I. Different definitions

Average capital: refers to dividing the total loan into equal parts during the repayment period, repaying the same amount of principal and the interest generated by the remaining loans in the current month every month. Because the monthly repayment amount is fixed, the interest is getting less and less, and as time goes by, the monthly repayment amount is getting less and less.

Matching principal and interest: refers to the repayment of the same amount of loans (including principal and interest) every month during the repayment period.

Second, the repayment methods are different.

Matching principal and interest repayment method is to repay the same amount of loans (including principal and interest) every month during the repayment period, and the total monthly payment remains unchanged.

Calculation method: monthly repayment amount = [principal x monthly interest rate x( 1+ monthly interest rate) loan months ]/[( 1+ monthly interest rate) repayment months-1]

The repayment method in average capital is that the monthly repayment amount is different and decreases month by month. The repayment amount in average capital is the largest in the first month, and then it decreases month by month, and the less it is.

Calculation method: monthly principal and interest repayment amount = (principal/repayment months)+(principal-accumulated repaid principal) × monthly interest rate.

Third, it is suitable for different people.

Matching principal and interest is suitable for families with fixed normal expenditure plans, especially young people. As they get older or get promoted, their income will increase and their living standards will naturally improve. For buyers with less down payment to support larger loans, matching principal and interest is a good choice.

The average capital is more suitable for lenders with strong repayment ability some time ago, such as some elderly people, whose income may decrease with their age or retirement. This repayment method is especially suitable for people who can repay quickly in a short time, because it can save some interest and quickly reduce the remaining principal.