1. Credit cards have become a part of many people's lives. Most credit card holders are familiar with credit card installment business, including cash installment, bill installment and car installment.

2. Credit card installment is the average capital, which means you have to pay back the principal every month, so in fact you will use less and less funds. You borrowed 654.38+00,000 yuan and paid it off in half a year. You may only have 6,000 yuan in actual use, but your interest is still in 60 yuan for one month, so the monthly interest rate at this time is not as accurate as described by the bank.

Interest rate theory

1. Generally speaking, the interest rate is expressed by annual interest rate, monthly interest rate and daily interest rate according to the measurement term standard.

2. In modern economy, interest rate, as the price of capital, is not only restricted by many economic and social factors, but also has a great influence on the whole economy. Therefore, modern economists pay special attention to the relationship between various variables and the balance of the whole economy when studying the decision of interest rate. Interest rate determination theory has also experienced the evolution and development of classical interest rate theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and contemporary dynamic interest rate model.

3. Keynes thought that savings and investment are two interdependent variables, not two independent variables. In his theory, the money supply is controlled by the central bank and is an exogenous variable without interest rate elasticity. At this time, the demand for money depends on people's psychological "liquidity preference".

4. loanable funds's interest rate theory is the interest rate theory of neoclassical school, which was put forward to revise Keynes's "liquidity preference" interest rate theory. To some extent, loanable funds's interest rate theory can actually be regarded as the synthesis of classical interest rate theory and Keynesian theory.

5. Hicks and others, a famous British economist, think that the above theory does not consider the income factor, so it is impossible to determine the interest rate level, so they put forward the IS-LM model based on the general equilibrium theory in 1937. Thus, a theory that interest rate and income are determined simultaneously under the interaction of savings and investment, money supply and money demand is established.