Generally speaking, a monthly interest rate of one point means that the monthly interest rate is 1%, and the annual interest rate is 12%. By analogy, a monthly interest rate of 3 points means that the monthly interest rate is 3%. The corresponding annual interest rate is 36%. According to the "Several Opinions of the Supreme People's Court on the Trial of Loan Cases by People's Courts", private lending interest rates can be appropriately higher than bank loan interest rates, but the maximum cannot exceed four times the bank loan interest rate of the same type. Beyond this limit, the excess interest is not protected by law.

The capital price of usury refers to the monthly interest rate of 1 yuan per month. For example, if the interest rate of usury is 6 cents, it is equivalent to an annual interest rate of 72%, and 1 cent is equivalent to an annual interest rate of 72%. 120%, which is much higher than bank loan interest rates. So, under this kind of interest rate, how is the usury interest calculated? Usually, the calculation method is compound interest, which is the compound interest method. Compound interest is used to calculate interest, and the formula is:

F=P×(1+i)^N (power)

F: compound interest terminal value

P: Principal

i: Interest rate

N: Integer multiple of interest rate acquisition time

Knowing the above formula, let’s give an example to explain how to calculate usury interest. . If you borrow a loan shark, the agreed interest rate is 6 cents, which means the monthly interest rate is 6%

The sum of principal and interest for one year = 15000×(1+6%)^12= 87598748.88 yuan