What is an annual interest rate?

Annual interest rate refers to the deposit rate for one year. The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of the interest amount to the principal of the deposit or loan within a certain period of time. It is usually divided into three types: annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate is expressed as a percentage of the thousandth, and the daily interest rate is expressed as a percentage of ten thousandth.