The bank's one-year interest rate is the annual interest rate. The calculation formula for a one-year period is profit and principal = principal * (1 + interest rate).

If the principal is 20,000 and the bank’s annual interest rate (i.e. annual interest rate) is 2.0%, then the sum of principal and interest = 20,000* (1+2%) = 20,400

That is, interest =20000*0.02 =400

Sum of principal and interest = principal + interest = 2000400=20400

1. Interest rate

(Chinese name: interest rate setting unit : The central bank is also called: interest rate (foreign name: interest rate)

Interest rate refers to the ratio of the amount of interest to the amount of loan funds (principal) within a certain period of time. The interest rate is the ratio of the amount of interest due each period on the amount borrowed, deposited or borrowed (called the total principal) to the face value. The total interest on the amount lent or borrowed depends on the total principal amount, the interest rate, the frequency of compounding, and the length of time the loan, deposit, or borrowing is made. Interest rate is a cost that borrowers need to pay for borrowed funds, and it is also the return that lenders get by delaying their consumption and lending to borrowers. The interest rate is usually calculated as a percentage of one-year interest and principal.

2. Bank interest rate, also called interest rate, represents the ratio of interest to principal within a certain period. In most cases, it is expressed as a percentage. Formula: interest rate = interest/principal*100%.

3. Monthly interest rate: Interest calculated with monthly as the interest calculation period. Annual interest rate: Interest calculated based on the year as the interest calculation period.

4. The calculation formula of annual interest rate and annual interest rate: monthly interest rate = annual interest rate / 12, annual interest rate = monthly interest rate * 1. For example: the annual interest rate is 7.05%, which converted into a monthly interest rate is 7.05%/12=5.875%.

5. Failure to repay a bank loan in time will result in overdue repayment, bad credit, and the formation of a black account:

(1) In the national credit system , bad credit and leaving relevant records

(2) Customers need to bear high penalty interest

(3) It is easy to cause legal disputes

So , when the loan from the bank is not repaid in time, it must be made up in time, and part of the penalty interest must be paid. Otherwise, bad credit history cannot be cleared. Being on the bank's blacklist will have serious consequences. Bank blacklists have a negative impact on many things such as house loans, buying tickets, running businesses, etc.