The loan will be annualized at 4.2% for five years, with a monthly interest rate of about 0.35%. In fact, the monthly interest rate is very easy to calculate, and it only takes 4.2÷ 12% months to calculate it. The annual interest rate of 4.2% is actually not high, because many loan interest rates have reached the level of 7%~9%, so we must pay attention to the future trend of interest rates when lending. In fact, the interest rate in our country will change with the change of this market, so we must find out the future trend before we can judge whether we should lend.
The difference between annualized rate and annual interest rate lies in their different definitions. Annualized rate generally refers to annualized interest rate, which refers to the interest rate discounted to the whole year through the current inherent rate of return (daily rate of return, weekly rate of return, monthly rate of return) of a product. It is only a theoretical interest rate, which can reflect the performance level of a product for reference. Annual interest rate refers to the ratio of interest amount to deposit principal or loan principal within one year. The value is fixed, which determines the income and interest of deposits and loans. It's real value.