Suppose the principal is 400,000 yuan, the annual interest rate is 4.5, the loan period is 10 years, and the interest is 18,000 yuan.

Because loan interest = loan amount × loan term × loan interest rate. Then it is known that the loan is 400,000 yuan, assuming that the annual interest rate is 4.5 and the number of years of the loan is 10 years, then the corresponding interest = 400,000 yuan (loan amount) × 4.5 (annual interest rate) × 10 (loan period) = 18,000 yuan.

Banks can use the accumulation interest calculation method and the transaction-by-transaction interest calculation method to calculate interest:

1. The accumulation interest calculation method accumulates account balances based on the actual number of days every day, and uses the accumulation interest calculation method to calculate interest. Multiply the number by the daily interest rate to calculate interest. The interest accrual formula is:

Interest = cumulative interest accrual amount × daily interest rate, where cumulative interest accrual amount = total daily balance.

2. The interest calculation method is based on the predetermined interest calculation formula: interest = principal × interest rate × loan term.

Extended information:

Credit not only affects the possibility of loan, but also affects the level of loan interest. It is easier for borrowers with good credit to apply for low-interest loans, and borrowing money If a person's credit is not good, the interest rate for applying for a loan will tend to be higher.

Due to different repayment methods, such as equal principal repayment method, equal principal repayment method, etc., the loan interest that needs to be paid every month is different. It also depends on the borrower's comprehensive repayment ability, such as whether the current job and income are stable, how much income, etc. These will also affect the lender's rating of the borrower, thus affecting the interest on the loan.

Baidu Encyclopedia-Loan Interest