For example: deposit 100 yuan,

The bank promised to pay an annual interest rate of 4.2%

Then the bank will pay 4.2 yuan interest next year.

The calculation formula is 100×4.2% = 4.2 yuan.

The formula is: interest rate = interest ÷ principal ÷ time × 100%.

Interest = principal × interest rate× time

= 100 × 4.2 %=4.2 yuan.

The final withdrawal 100+4.2= 104.2 yuan.

Extended data

Matters needing attention

1. When applying for a loan, the borrower makes a correct judgment on his repayment ability. Design a repayment plan according to your income level, leaving room appropriately, without affecting your normal life.

2. Choose the appropriate repayment method. Matching repayment method and matching principal repayment method are all known. Once the repayment method is agreed in the contract, it shall not be changed during the whole loan period.

3. Repay on time every month to avoid penalty interest. From the month following the initiation of the loan, it is generally the repayment date of the next month. Don't touch the liquidated damages because of your negligence, so that the bank can't apply for a loan again.

4. Take good care of your contracts and IOUs, read the terms of the contracts carefully, and know your rights and obligations.