Definition:
Annual interest rate simple interest refers to the interest rate discounted to the whole year through the inherent rate of return of products.
Annual loan interest rate:
Definition:
The annual interest rate of the loan is calculated in proportion to the total loan fees charged by the borrower and the actual loan principal, and converted into an adult form.
Calculation:
The annual interest rate of the loan can be calculated by compound interest or simple interest method, among which, if the simple interest calculation method is adopted, it should be explained that it is simple interest. Simple interest means that no matter how long the deposit period of the fund is, only the interest of the principal is charged, and the interest of previous periods is not charged in the next interest period.
Calculation of the final value of simple interest:
The final value of simple interest is the sum of the principal and interest of a certain fund at a certain point in the future. The formula for calculating the final value of simple interest is: F=P+P×i×n =P×( 1+i×n).
Calculation of present value of simple interest:
In real economic life, it is sometimes necessary to determine its present value according to the final value, that is, the present value. The formula for calculating the present value of simple interest is: P=F-I=F-P×i×n=F/( 1+i×n).
Description of annual interest rate, monthly interest rate and daily interest rate and influencing factors of annual interest rate;
Concept explanation:
Annual interest rate refers to the ratio of interest amount to deposit/loan principal within one year, usually expressed as a few percent. In the loan industry, we often refer to LPR (loan market quoted interest rate, the reference benchmark of current mortgage interest rate), provident fund loan interest rate and central bank loan benchmark interest rate.
Both monthly interest rate and daily interest rate are converted from annual interest rate. To be precise, it is mutual conversion. The conversion formula is: annual interest rate = monthly interest rate × 12= daily interest rate ×360. That is, if the annual interest rate is 18%, the monthly interest rate is 1.5%, and the daily interest rate is 0.05%.
Influencing factors of annual interest rate:
The annual interest rate is influenced by many factors, such as central bank policy, price level, stock and bond market, etc. The annual loan interest rate, if specific to individuals, needs to refer to the influence of personal credit status, income, occupation, education and many other factors. Generally speaking, the better the personal credit status, the higher the loan amount you can enjoy and the more favorable the loan interest rate will be.