It means that the interest generated in one cycle of the loan is 5% and 5 cents. Generally, bank loans are calculated on a monthly basis.

For example, 10,000 yuan is calculated based on the monthly interest of 5% and 5 cents: 10000 The interest is 660 yuan. The interest is 5%, and the units are divided into annual interest 5%, monthly interest 5‰, and daily interest 0.5‰

The basic formula for calculating interest. The basic formula for calculating interest on savings deposits is: Interest = Principal × Deposit Period × interest rate.

Interest rate, also known as interest rate, is the ratio of interest to principal within a certain date. It is generally divided into three types: annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage, the monthly interest rate is expressed as a thousand percent, and the daily interest rate is expressed as a ten thousand percent. For example, the annual interest rate of 5% is written as 5%, that is, the regular one-year interest rate for every thousand yuan of deposits is 50 yuan, the monthly interest rate of 5% is written as 5‰, that is, the monthly interest rate for every thousand yuan of deposits is 5 yuan, and the daily interest rate of 5 centimeters is written as 0.5 ‰, that is, the daily interest is 50 cents per thousand yuan of deposit.

Bank loan refers to an economic behavior in which a bank lends funds to those in need of funds at a certain interest rate in accordance with national policies and agrees to return the funds within an agreed period. Generally, you are required to provide a guarantee, a house mortgage, or proof of income, and have a good personal credit report before you can apply.

Moreover, in different countries and in different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan limits, working capital loans, standby loan commitments, project loans, etc., while industrial and commercial loans in the United Kingdom mostly take the form of bill discounts, credit accounts, and overdraft accounts.

The calculation issues of the deposit period in the interest calculation formula:

1. Calculate the deposit period by counting the beginning and not the end

2. Regardless of the big month, Small months, ordinary months, and leap months are calculated as 30 days per month, and 360 days for the whole year.

3. The maturity dates of various deposits are calculated based on year, month, and day, such as If the account opening date is a missing date in the expiration month, the end of the expiration month will be the expiration date.

The conversion relationship between annual interest rate, monthly interest rate and daily interest rate is: annual interest rate = monthly interest rate × 12 (months) = daily interest rate × 360 (days); monthly interest rate = year Interest rate ÷ 12 (months) = daily interest rate × 30 (days); daily interest rate = annual interest rate ÷ 360 (days) = monthly interest rate ÷ 30 (days). In addition, the interest rate should be consistent with the deposit period.