Solution: Generally speaking, some interest refers to the monthly interest rate.

Then the annual interest rate is 6.4% and the monthly interest rate is 6.4%12 = 0.53%.

The monthly interest rate is 0.53%, which means the monthly interest rate is 5.3%.

That is, the annual interest rate of 6.4% is equivalent to the monthly interest rate of 5.3%.

Monthly interest rate refers to the interest calculated on a monthly basis (the ratio of interest amount to deposit and loan principal within one month). The monthly interest rate is expressed as a few thousandths of the principal.

Relationship between monthly interest rate and annual interest rate

Relationship between annual interest rate and monthly interest rate: monthly interest rate = annual interest rate/12, annual interest rate = monthly interest rate * 12. For example, the annual interest rate is 7.05%, which translates into a monthly interest rate of 7.05%/ 12=5.875‰ (generally, the interest rates of banks in mortgage contracts are expressed by monthly interest rates).

Refer to the above content: Baidu Encyclopedia-Monthly Interest