Credit card installments are calculated using equal amounts of principal and interest. Although the monthly repayment amount remains unchanged, the principal continues to decrease, resulting in a low utilization rate of funds, so the calculated interest is high.

1. The real interest rate of the equal principal and interest repayment method

For example, if the credit card bill is 10,000 yuan, and the installment monthly interest rate is 0.6 after discounting the bank discount, the annual rate is 0.6*12 =7.2, which seems to be quite cheap. If divided into 12 installments, the principal to be repaid every month is 833 yuan, and the interest is 60 yuan. The monthly principal plus interest will be a monthly repayment of 893 yuan, which does not seem to be much.

However, many people ignore one point. The interest paid every month is fixed in the equal principal and interest repayment method, while the principal decreases every month. For example, the principal of the first month The deposit is 10,000, the second month is 10,000-833=9167, and so on. By the 12th month of the last period, the principal is 833 yuan, and the interest is still 60 yuan. The actual interest rate in the last month is 60/833=7.2, which is many times higher than 0.6 per month! So what is the actual monthly fund utilization rate of equal principal and interest repayment?

(10000 9167 8334 7501