Description:

1. Assuming the interest of each period is equal, the total interest is 2000, and the number of periods is 12 months. The interest of each period is 2000/ 12 = 166.67 yuan.

2. Assume that the loan principal (i.e. the total amount) is 10000 yuan. According to the interest and principal of each period, the repayment amount of each period (including principal and interest) is calculated, and the repayment amount of each period is 833.33 yuan.

3. The interest ratio is the interest of each installment divided by the repayment amount of each installment, that is, 166.67/833.33 ≈ 0.20, that is, 20%.

4. The annualized interest rate can be calculated by multiplying the interest of each period by 12, that is,166.67 *12 = 2,000 yuan. Therefore, the annualized interest rate is 2000/ 10000 = 0.2, that is, 20% or 300%.

Extended data:

The annualized interest rate is an important indicator to measure the loan cost, which represents the percentage of loan interest in a year. In this case, the total interest that the borrower needs to pay is 2000 yuan, which is equivalent to 20% of the loan principal. Note that the calculation assumes that the interest of each period is equal, regardless of other expenses and additional conditions. When actually calculating the annualized interest rate, we should comprehensively consider various expenses and repayment methods.