2. The monthly interest rate refers to the interest calculated on a monthly basis of .75%, which is expressed as a few thousandths of the principal, for example, .75%, and the monthly interest rate is .75. If you borrow one hundred yuan, the interest paid after one month is .75 yuan
. The monthly interest rate refers to the ratio of interest to principal in a certain period of time. Second, the fee collection methods are different
Generally speaking, if the fee is calculated according to the "rate", the fee will be paid in one lump sum; Most of the interest calculated according to the "interest rate" is repaid in installments.
Third, the scope of application is different
The monthly rate is mostly used in the handling fee calculation of credit card installment payment; The monthly interest rate is mostly used in loans.
Fourth, the settlement method of prepayment is different
Generally, most of the fees calculated by "rate" are handling fees, and even if such fees are prepayment, the borrower must settle them; For the interest calculated by "interest rate", if the borrower intends to prepay, the interest will generally be settled on the day of prepayment.
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 7.5%, which translates into a monthly interest rate of 7.5%/12=5.875‰ (generally, the interest rates of banks in mortgage contracts are expressed by monthly interest rates).
The monthly fee is based on the initial loan amount for each installment. In the monthly interest rate calculation method of equal principal and interest, the interest will decrease with the decrease of repayment principal, so the overall interest will be lower accordingly.
interest rate refers to the ratio of the amount of interest to the amount of borrowed funds (principal) in a certain period. Interest rate is the main factor that determines the capital cost of an enterprise, and it is also the decisive factor for the enterprise to raise funds and invest. In the study of the financial environment, we must pay attention to the current situation of interest rate and its changing trend
Interest rate refers to the ratio of the interest amount due in each period to the par value in the amount borrowed, deposited or borrowed (called the total principal). The total interest of the lent or borrowed amount depends on the total principal, interest rate, frequency of compound interest and the length of time of lending, deposit or borrowing. Interest rate is the price that the borrower needs to pay for the money he borrows, and it is also the return that the lender gets by delaying his consumption and lending it to the borrower. The interest rate is usually calculated as a percentage of one-year interest to principal.