compound interest

Symmetry of simple interest, a method of calculating interest. As the borrower fails to repay the principal and interest due, the lender requires that the due interest be incorporated into the principal and then the interest be calculated. It calculates the interest of principal and interest. That is, the interest is also converted into the cost fund, which, together with the original fund, is used as the basis for calculating the next interest, commonly known as Galilee. The formula of compound interest is a = p (1+R) n, where a represents the sum of principal and interest, p represents principal, r represents interest rate, and n represents the number of periods.

For example, the loan 1 000 yuan, with a term of 2 years and an annual interest rate of 6%, is compounded once a year. Upon maturity in two years, the principal with interest shall be 65,438+065,438+023.60 yuan (the principal in the first year shall be 65,438+0,000 yuan, and the interest shall be 60 yuan, and the principal in the second year shall be 65,438+0,060 yuan).

2. Annual interest rate = interest/principal * 100 expressed in percentage.

Monthly interest rate = annual interest rate/12* 10 expressed in thousandths.

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