The conversion formula of monthly interest and annual interest rate is: annual interest rate = monthly interest × 12 (month), so the annual interest rate of 0.29 is 3.48. 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. The annual interest rate is the annual interest. For example, the annual interest rate is 2.7%, that is, taking 1 ten thousand yuan as an example, the annual interest can be 10000*2.7%=270.
The annual loan interest rate refers to the interest charged within one year, and the monthly interest rate refers to the interest charged within one month. The difference between the two is that the calculation unit is different, with annual interest as the unit and monthly interest as the unit. If the monthly interest rate is to be converted into annual interest rate, the conversion formula is: annual interest rate = monthly interest rate × 12 (month); The reverse is: monthly interest rate = annual interest rate/12 (month). The monthly interest rate refers to the monthly interest. The monthly interest rate is expressed as a few thousandths of the principal.
It should be noted that although there are actually 365 or 366 days in a year, sometimes 30 days in a month, sometimes 365 or 438+0 days, and 28 or 29 days in February, in the conversion formula of loan interest rate, a year is 360 days, and a month is 30 days.
The meaning of interest
Interest refers to the reward that the currency holder (creditor) gets from the borrower (debtor) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds. Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit.
China's interest rate policy is formulated by the People's Bank of the State Council, which is mainly based on the market. Therefore, interest rates have a far-reaching impact on life. For example, the interest rate is inversely proportional to the expected dividend and can be used to buy and sell stocks. Another example is that when the economy is too cold, the country cuts interest rates, reduces deposits and stimulates consumption. In addition, interest rates will also affect the exchange rate, real wages, mortgage, investment, international tourism and so on. In a word, interest rate has a great influence on our life, even the divorce rate is affected by it.