Attachment: Interest is the use fee of money in a certain period of time, and it refers to the remuneration that money holders (creditors) get from borrowers (debtors) for lending money or monetary capital. It is influenced by the principal and interest rate. The annualized interest of 65,438+05% depends on the amount of principal deposited by the depositor. The higher the principal, the higher the interest.
Annualized interest rate refers to the interest rate discounted to the whole year through the inherent rate of return of products.
On March 3, 20021March 3 1 day, the People's Bank of China issued an announcement to make relevant provisions on the annualized interest rate of loan products.
Calculation method
On March 3, 20021March 3 1 day, the People's Bank of China issued an announcement to make relevant provisions on the annualized interest rate of loan products.
1. When marketing through websites, mobile applications, posters and other channels, institutions engaged in loan business shall show the annualized interest rate to borrowers in an obvious way. Institutions engaged in loan business include, but are not limited to, deposit-taking financial institutions, auto finance companies, consumer finance companies, microfinance companies and Internet platforms that provide advertising or display platforms for loan business.
2. The annualized interest rate of the loan is calculated according to the ratio of all loan fees charged to the borrower to the actual loan principal, and converted into annualized form. The annualized loan interest rate can be calculated by compound interest or simple interest method: compound interest is calculated by internal rate of return; If the simple interest calculation method is adopted, it should be explained that it is simple interest.
3. The calculation method of annualized rate of return is to convert the current rate of return (daily rate of return, weekly rate of return and monthly rate of return) into an annual rate of return, which is a theoretical rate of return, not an actual rate of return.
4. annualized rate of return The annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days. There are two ways to carry forward money market funds: 1. "Daily dividends are carried forward on a monthly basis", which is equivalent to daily simple interest and monthly compound interest; 2. "Daily dividends are carried forward daily", which is equivalent to daily compound interest.