Financial Management: single interest rate and compound interest rate-a bank scam

" Difference between compound interest rate and single interest rate :

Assume that you have 100 yuan to get the bank deposit period. For high interest rates and three-year deposits, assume that the current three-year periodic interest rate is 5%. The two different results are as follows:

Single interest rate:

￥100x(1 + 5% x 3 years) = ￥115

Compound interest rate:First Year:$100x(1 + 5%) = $105
The second year:$105x(1 + 5%) = $110.25
Third year: ￥110.25x(1 + 5%) = ￥115.7625

In the above example, I have learned two formula for interest rate calculation:

1. Single interest rate: base * [1 + (annual interest rate * years)], for example: 100*(1 + 0.05*3) = 115
2. Compound interest rate: base * [(1 + annual interest rate) ^ years], for example: 100*[(1 + 0.05) ^ 3] = 115.7625

Next, let's look at a case: the trap of Housing Loan Interest
In this case, Yuan brother (yuange@nsfocus.com) analyzed his loan of 0.1 million 20 years but repayment35.5730The process exposes the bank'sThe name of the monthly interest rate of 5.325 ‰LineReal annual rate of 6.58%And exposes the greedy faces of State-owned capitalists. The following is the loan interest rate page from China Merchants Bank. The actual interest rate is6.39%,Yuan GE's analysis process and conclusions are correct.

Loan period	Annual Rate
0-6 months (including March June)	5.4%
June-1 year (including 1 year)	5.85%
1-3 years (including 3 years)	6.03%
3-5 years (including 5 years)	6.12%
5-30 years (including 30 years)	6.39%

However, Mr. Yuan did not figure out what the result would be if he saved 0.1 million yuan to the bank. Well, let's analyze it now:

The deposit interest rate of a bank is very low. It only has an annual interest rate of 2.25%. You can still calculate the deposit interest rate of 6.39% yuan based on the loan's annual interest rate of 0.1 million.

First, calculate the single interest rate algorithm provided by the Bank:

100000*(1 + 0.0639*20) = 0.2278 million

Then, the algorithm based on the interest rate is as follows:

100000*1.0639 ^ 20 = 0.34516 million

The difference between the two algorithms is 0.1174 million RMB! If Yuan Ge is indeed providing 739.11 yuan a month, his loan is calculated based on a compound interest rate of 6.58%. If he is charged at a single interest rate, what is Yuan GE's monthly offer? Let's take a look. Well, how can we do this? I don't know. I have to ask if I love to engage in teacher work.

Conclusion:

China's banks are not very generous. If you save 0.1 million yuan to China's banks, you can only get 3.6%, 0.172 million * (1 + 100000*20) after 20 years at the annual interest rate of 0.036 yuan (full storage) = 0.172 million. Note that saving money is calculated at a single interest rate;

Your bank loan to China is worth 0.1 million yuan, and you will pay 3.69% after the annual interest rate of 0.34516 million, 100000*1.0639 ^ 20 = 0.34516 million. Pay attention to the fact that borrowing money is based on the compound interest rate, the income difference is exactly doubled;

The state-owned bank is like Huang shiren, and Huang shiren is also fighting for profit. A friend who saw this article, if you are buying a house, you should be clear about the account and buy it again. Don't be careful when you become a bank's house slaves, don't get down to state-owned banks!