1, simple interest rate calculation:
In simple interest rate calculation, the interest rate is calculated according to a certain proportion of the principal. The formula is: interest = principal× interest rate× time. The unit of interest rate can choose different time units such as year, month and day according to the actual situation. Interest is the principal multiplied by the interest rate and time.
2. Calculation of compound interest:
When calculating compound interest, the interest will be recalculated according to each interest period and added with the principal to form a new principal. The formula is: compound interest = principal ×( 1+ interest rate) n- principal. Where n represents the number of interest-bearing periods, which can be years, months or other time units. Compound interest calculation can reflect the increase of interest more accurately.
3. Relationship between annual interest rate and real interest rate:
The annual interest rate refers to the interest rate calculated according to the interest period of one year. The real interest rate is the final interest rate after considering other expenses and factors besides the annual interest rate. The formula is: actual interest rate =( 1+ annual interest rate) ×( 1+ expense interest rate)-1. Fee interest rate includes the influence of various fees and handling fees on interest rate.
4. The relationship between nominal interest rate and real interest rate:
Nominal interest rate refers to the interest rate given without considering inflation. The real interest rate is the final interest rate after considering inflation. The formula is: real interest rate =( 1+ nominal interest rate) /( 1+ inflation rate)-1. Inflation rate refers to the proportion of the decline in the purchasing power of money caused by rising prices.
5. Calculation of annualized interest rate:
Annualized interest rate is a method to convert interest rates in other interest periods into annual interest rates. The formula is: annualized interest rate =( 1+ interest rate) n- 1. Where n represents the number of other interest periods relative to one year. This calculation method can conveniently compare and unify the interest rates of different interest periods. The calculation method of interest rate can choose the appropriate formula according to the specific situation, and consider other expenses and factors to calculate the actual interest rate.