Renovation loans are loans with relatively low interest rates. The monthly interest rate usually fluctuates around 0.25. At the lowest point, it may be as low as 0.21. That is, for a loan of 100,000 yuan, the monthly interest is 210 yuan. One year's interest is 2,520 yuan, and the annual interest rate is around 6, but many people cannot get an interest rate as low as 0.21.

If you borrow 100,000 yuan at a monthly interest rate of 0.25, what is the interest for 5 years? I believe many people are concerned about this issue, so I will focus on it below.

There are two repayment methods for decoration loans, one is repayment of equal principal and interest, and the other is repayment of equal principal and interest. The interest calculation methods for the two repayment methods are different. 1. Repayment of principal and interest.

Renovation loans are mostly repaid with equal principal and interest, and the principal and interest repaid each month are fixed. In other words, the interest will not decrease as the loan principal decreases.

A loan of 100,000 yuan with a monthly interest rate of 0.25 and repayment in 5 years (60 installments). The principal and interest of the monthly repayment are the same.

Then the monthly interest is 100,000 × 0.25 = 250 yuan; the annual interest is 250 × 12 months = 3,000 yuan; the 5-year interest is 3,000 yuan × 5 = 15,000 yuan.

The monthly principal repayment is 100,000 ÷ 60 months ≈ 1,666.67 yuan; the principal repayment required in one year is 1,666.67 × 12 months ≈ 20,000 yuan; the principal repayment required in five years is 20,000.04 × 5 ≈ 100,000 yuan.

Monthly principal and interest repayment = 1666.67 250 = 1916.67 yuan; annual principal and interest repayment = 1916.67 × 12 = 23,000.04 yuan; 5-year principal and interest repayment = 23,000.04 × 5 ≈ 115,000 yuan .

Therefore, for a loan of 100,000 yuan, the monthly interest rate is 0.25, and the principal and interest are repaid in 5-year installments, the interest required is 15,000 yuan, the principal is 100,000 yuan, and the total repayment is 115,000 yuan. .