The annual interest rate refers to the deposit interest rate for one year. The term “interest rate” is an abbreviation for “interest rate ratio,” which denotes the ratio of interest amount to the principal of a deposit or loan over a specified period. Interest rates are typically categorized into three types: annual, monthly, and daily. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a per mille rate, and the daily interest rate as a per ten-thousand rate.
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