1. The monthly interest rate of 5% means that the monthly interest rate is 0.5. When converted into annual interest, the annual interest rate is 6.

2. If the user’s borrowing amount is 10,000 yuan and the borrowing time is one year, according to the formula of interest = interest rate × borrowing amount × borrowing time, then the interest for one month is 50 yuan and the interest for one year is It’s 600 yuan. The unit centimeter is often used in private lending, which means a few thousandths.

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1. The main differences between interest rate and interest are:

1. Definition of different interest rates, which are the amount of interest and the amount of loan funds within a certain period, that is, the principal A gold ratio, usually expressed as a percentage. According to different measurement term standards, the expression methods include annual interest rate, monthly interest rate, and daily interest rate. Interest refers to the remuneration that currency holders (creditors) receive from borrowers (debtors) for lending currency or monetary capital. In other words, it is money other than principal received from deposits and loans (different from "principal").

2. Calculation formula: Different interest rates = interest ÷ (principal x time) × 100. The interest calculation formula is: interest = principal × interest rate × time. In short, interest rate is a ratio; and interest is a specific monetary amount. Interest rate is the level of interest per unit of money per unit of time.

2. What is the concept of daily interest rate 0.05?

Calculated on a daily basis, assuming that the remaining debt of Huabei is 10,000 yuan, then 5 yuan of interest needs to be paid every day, which is 50 yuan for 10 days, and the interest for one month (30 days) is 150 yuan.

The total interest for borrowing 10,000 yuan a year is 10,000*0.05*365=1,825 yuan, and the converted annual interest rate is 0.05*365=18. Although there will be a slight error, the difference is not big.

3. Is the daily interest rate of 0.05 considered high?

As far as loan interest rates are concerned, bank pure credit loan interest rates are much lower. For example, the CCB Quick e-loan has a quota of 1,000 yuan to 100,000 yuan and a fixed interest rate between 6 and 10; the annual interest rate of ICBC e-loan is also It is around 8, so if you apply for a credit loan, it is recommended to choose a bank. As a consumer loan product, Huabei is similar to a credit card, and the annual interest rate of credit card installments is also very high. Let’s compare it with common credit card installment rates.

3rd period: 24*0.72*3/4=12.96

6th period: 24*0.72*6/7=14.81

12th period: 24* 0.72*12/13=15.95

24 periods: 24*0.72*24/25=13.82

In general, Huabei is indeed relatively high based on daily interest rates. , so the minimum repayment method is only suitable for emergencies and cannot be relied on for a long time.