For example, the loan mentioned above is easy to calculate, and the actual annualized interest rate is 8.1%× 2-1=15.1%.
Similarly, the credit card is divided into 12 installments, and the handling fee for each installment is 0.5%. On the surface, the annualized interest rate is 0.5% × 12 = 6%, while the actual annualized interest rate is about 1 1%.
The annual interest rate formula of credit card installment: installment rate * installment months/(installment months+1) * 24 = annual interest rate.
For example, the rate mentioned above by Ping An Bank is calculated as follows:
0.83%* 12/( 12+ 1)*24= 18.39%。
This means that the annual interest rate of this issue is actually 18.39%!
For example, if you borrow 12000 yuan from a certain platform, the total interest of 12 months is 970.69 yuan. According to general understanding, the annualized interest rate is 970.69/12000×100% = 8.1%.
But in fact, this 12000 yuan is not paid off at one time at the end of the year, but you pay back more than 1000 yuan every month. In other words, you actually only account for 12000 yuan in the first month, and then it will decrease month by month.
So interest can't be divided by the general annualized interest rate! As for the real annualized interest rate, it needs a complicated formula and a complicated calculation process.