Annual interest rate formula: annual interest rate = installment fee rate/(number of installments+1)*24 = single installment fee rate * number of installments/(number of installments+1)*24.

Some cardholders think that the annual installment fee rate of 15% credit card is not high, but after careful calculation, the actual fee paid is much higher than the loan interest in the same period.

The annualized rate of return represents the income in the most recent year:

It is a reference index, mainly used for interest-bearing products, providing investors with a more intuitive data for reference only.

For example, the commonly used calculation method is that the interest/principal/term × 12 of monthly repayment of principal and interest is the annualized interest rate; The annualized rate of return does not accurately reflect the current actual profit situation, because it is the average value calculated according to the income of the past year and cannot reflect the latest income level.