The credit card installment interest rate is determined by the card-issuing bank based on a comprehensive assessment of the cardholder's credit conditions. Generally, the monthly interest rate is around 0.75, which translates into an annual interest rate of 9. However, the cardholder only owed the bank 100 million yuan in the first month. With the monthly repayments, the debt became smaller and smaller. In the last month, the debt owed was only 833 yuan, but the monthly interest owed was still Calculated based on the total borrowed amount, the actual interest rate is much higher than 9.

Extended information:

For example, if the credit card bill is 10,000 yuan, the monthly installment interest rate is 0.6 after discounting the bank discount, and the annual rate is 0.6*12=7.2, which seems quite cheap. , if divided into 12 installments, the principal to be repaid each month is 833 yuan, and the interest is 60 yuan. One month's principal plus interest will result in a monthly repayment of 893 yuan.

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 gold is 10,000, and the second month is 10,000-833=9167.

By analogy, when the 12th month of the last period is covered, 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. It is many times higher than 0.6 per month.