Take a loan of 654.38+00000 yuan as an example, the annual interest rate is 5%, and the annual interest rate is 654.38+000005% = 500 yuan. One month's interest is100005%/12 = 41.66 yuan, and one day's interest is 100005%/360= 1.38 yuan. From the interest point of view, the annual interest rate of 5% is very low.
It is very common for contemporary young people to apply for a loan. However, before applying for a loan, everyone must consider the interest issue and cancel the loan through formal channels and within their own ability.
Interest refers to the reward obtained by the fund owner for lending the fund, which comes from part of the profits formed by the producers using the fund to play its operational functions.
Interest is one of the manifestations of the time value of funds. Formally, it is the reward that the monetary owner gets from the borrower for issuing monetary funds.
As the use price of funds, interest plays a very important role in the operation of market economy, mainly in the following aspects:
Functions that affect enterprise behavior
As the occupation cost of an enterprise, interest directly affects the economic benefits of the enterprise. In order to reduce costs and improve efficiency, enterprises should do everything possible to reduce the amount of capital, and at the same time compare the costs of various financing methods in the process of financing. If the enterprises in the whole society regard saving interest expenses as a common behavior mode, then the efficiency of economic growth will definitely improve.
Function of influencing residents' asset selection behavior
With the increasing real income level and savings rate of China residents, asset selection behavior appears. The increase of financial instruments provides an objective basis for residents' asset selection behavior, and interest income is the main incentive for residents' asset selection behavior. Residents' departments attach importance to interest income and spontaneously produce asset selection behavior, which has an impact on macro-control and micro-foundation reconstruction. Judging from the current situation in China, the high savings rate has become a major feature of China's economy, which provides a solid capital base for the rapid economic growth. The various asset selection behaviors made by residents under the incentive of interest income have contributed to the realization of various macro-controls.
Functions that affect government behavior
Since interest income is closely related to the economic interests of deficit and surplus departments in the whole society, the government can also use it as an important economic lever to regulate economic operation. For example, if the central bank takes measures to lower interest rates, more funds will flow to the capital market, and when interest rates increase, funds will flow out of the capital market. If the government raises funds through credit, it can issue treasury bonds at an interest rate higher than the bank's deposit interest rate for the same period, and absorb private monetary funds into the hands of the government for various fiscal expenditures.
The amount of interest depends on three factors: principal, deposit term and interest rate level.
The calculation formula of interest is: interest = principal x interest rate x deposit term.
What's the interest rate for a bank loan of eleven thousand?
Take China Bank's latest loan interest rate of 20 19 in February as an example. The loan interest of 1 year 1000 yuan is 430 yuan.
20 19 12 the best lending rate of Bank of China is 4.3%, and the loan interest is 100004.3% = 430 yuan.
Extended data
The interest rate of bank loans is determined by the loan contract interest rate of banks and other financial institutions as lenders, and the parties can only determine it through consultation within the upper and lower limits of interest rates stipulated by the People's Bank of China. If the loan interest rate is high, the repayment amount of the borrower will increase after the loan term, otherwise, it will decrease. There are three factors that determine loan interest: loan amount, loan term and loan interest rate.
The determinants of bank loan interest are:
1, bank cost. Any economic activity needs cost-benefit comparison. There are two types of bank costs: borrowing costs-prepaid interest on borrowed funds; Additional cost-the cost of normal business.
2. Average profit rate. Interest is the subdivision of profit, which must be less than the profit rate, and the average profit rate is the highest limit of interest.
3. Supply and demand of loan funds. If the supply exceeds the demand, the loan interest rate will inevitably fall, and vice versa. In addition, the loan interest rate also needs to consider price changes, securities returns, political factors and so on.