Annual interest rate = monthly interest rate × 12 (months) = daily interest rate × 360 (days);

Monthly interest rate = annual interest rate ÷ 12 (months) = daily interest rate × 30 (days) );

Daily interest rate = annual interest rate ÷ 360 (days) = monthly interest rate ÷ 30 (days).

The daily interest rate is 0.05%, the monthly interest rate is 1.5%, and the annual interest rate is 18%.

The annual interest rate is the deposit interest rate for one year. If the annual interest rate is the general financial management or loan platform, it is expressed in the form of a few percent.

Monthly interest rate is an interest rate calculated based on one month as a cycle, usually expressed in thousandths.

The daily interest rate is the interest calculated based on the daily interest calculation cycle, generally expressed in ten thousandths.

Extended information

The factors that generate interest:

1. Delayed consumption. When a lender lends money, it is equivalent to delaying the consumption of consumer goods. According to the principle of time preference, consumers will prefer current goods to future goods, so positive interest rates will appear in the free market.

2. Expected inflation, most economies will experience inflation, which represents an amount of money that will buy fewer goods in the future than it does now. Therefore, the borrower needs to compensate the lender for losses during this period.

3. Substitute investment, the lender has the choice to put money in other investments. Due to opportunity costs, lenders who lend money are giving up possible returns on other investments. Borrowers compete with other investments for this funding.

4. Investment risks. The borrower may go bankrupt, abscond, or fail to repay debts at any time. Lenders need to charge additional money to ensure that they can still receive compensation in these situations.

5. Liquidity preference, people would prefer that their funds or resources can be traded immediately at any time, rather than requiring time or money to withdraw them. Interest rates also compensate for this.

Baidu Encyclopedia--Interest