If it is annual interest, 2% is 2%, if it is monthly interest, 2% is 0.2%.
Some interest in private lending usually refers to a few percent of the monthly interest rate.
The basic formula for calculating interest is: interest = principal × deposit term × interest rate.
Interest rate conversion, in which the conversion relationship among annual interest rate, monthly interest rate and daily interest rate is: annual interest rate = monthly interest rate × 12 (month) = daily interest rate ×360 (day);
Monthly interest rate = annual interest rate12 (month) = daily interest rate ×30 (days).
Daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days). In addition, the use of interest rates should be consistent with the deposit period.