Rebirth: Japanese investor

   Chapter 619 Compound Interest

Miku Yamada walked in with his mobile phone in his hand, stood behind Masayoshi Kishimoto, and said at a normal speed: "There is a call from the Japanese embassy in Seoul, South Korea. If the chairman needs it, they can provide you with the necessary help. and consular protection."

  Kishimoto's first reaction was to think of a similar scene in Mark Twain's "Million Pounds" that appeared in his head.

   He crossed his hands on his chest, turned his back, and said with a smile, "If I were just an ordinary Japanese, would they still be so attentive?"

"It is precisely because the chairman is not an ordinary Japanese national that he will receive special care. Your safety and security are not only related to Japan's economy, but also to the employment of tens of thousands of people." Miku Yamada bluntly.

   "I'm just a mortal person, not as important as what you said." Kishimoto Masayoshi smiled without changing.

   "President, you are too modest. The second thing is that the Korean KBS TV station wants to conduct an exclusive interview with you. Would you like to reject this?" Miku Yamada asked seriously.

   "Nowadays, I'm the most unpopular Japanese among some Koreans. I won't accept interviews with their characters, so I don't want to add more trouble to those people."

   Masayoshi Kishimoto doesn't like being interviewed on the one hand, and on the other hand, he is already sharpening his knife to the pig and sheep. Of course, he wants to start a looting of the Korean economy. The knife in his hand was hungry and thirsty, and once it was raised high, it would definitely be slaughtered.

   "Understood." Yamada Miku fully understood what the president meant.

   "Do you use a credit card?" Kishimoto Masayoshi asked purposefully rather than aimlessly.

   Yamada Miku replied succinctly: "Use it."

   "It means that you are not only in the minority, but also quite fashionable. Can you tell me the pros and cons of credit cards?"

   Kishimoto has long known that the personal usage rate of Japanese credit cards is only 7%, while the personal usage rate of Koreans' credit cards has reached as high as 69% at this time.

The reason why    has become what it is now is the encouragement of the Korean government and the Bank of Korea. After the Asian financial crisis in 1997, the Korean government launched a series of policies to encourage the development of the credit card industry since 1999 in order to expand domestic demand to stimulate the economy.

   For example, the upper limit of 700,000 won for cash advances is abolished; the restriction that cash loans (cash advances and credit card loans) should not exceed 50% of credit card receivables is lifted;

   Allow credit card spending to exceed 10% of personal income, 10% of which can be used as income tax relief, up to a maximum of 300 million won;

In 2001, the maximum amount of this reduction rate was increased to 20% and 5 million won respectively; since 2000, receipts with a credit card purchase limit of more than 10,000 won can participate in the redemption, and the maximum reward is 100 million won in cash. Wait.

For merchants, South Korea has also taken some measures to require them to accept credit card transactions. For example, merchants can participate in redemption, with a maximum bonus of 20 million won; merchants can deduct 2% of the transaction value from business value-added tax, with a maximum of 5 million won;

   It is stipulated that merchants with annual sales of more than 24 million won must accept credit card transactions, otherwise they will face imprisonment for a term of less than one year or a fine of less than 10 million won.

  Credit card companies use policies to encourage the indiscriminate issuance of credit cards, develop a large number of members to expand operations, and improper competition in the market has begun to lead to excessive consumption by consumers indiscriminately using credit cards, and serious long-term debt; the industry has experienced a "credit card fever".

  The difference from Japan is that when Koreans take subways and buses, they do not use IC cards, but they can swipe directly with credit cards.

   Even students with unstable or no income can also get credit cards. Judging from the number of credit cards issued in South Korea, the average number of credit cards per Korean is 2.5.

   In fact, except for children, especially conservative people and other factors, every Korean has at least 4 or 5 credit cards.

   In fact, the average number of credit cards for young people has reached seven or eight, and many even have as many as a dozen credit cards.

  Why are banks keen to issue credit cards? In fact, the reason is very simple, that is, the profit margin is huge. Do you think they don't know that there will be cases where the east wall will be demolished, the west wall will be repaired, and the cards will be stuck?

   They had long expected that many people would do this, and they were eager to do it. Interest, late fees, handling fees, etc., the annual interest for a year is at least ten percent, generally two or thirty percent.

   Of course, the bank side would never say that outright.

   It will get a facelift and say the interest is as low as 5/10,000 per day. A rough calculation of 0.05% (five ten thousandths) * 365 days = 18.25% casually. In fact, this is a simple interest calculation.

  Compound interest is not calculated like this, it is also known as profit rolling, snowballing. The formula is F=P(1+i)^n. In addition, there is a more incomprehensible interest calculation formula, PV*(1+r/n)^n=FV.

   Masaru Kishimoto still remembers compound interest in his first class in "Basics of Accounting" when he was a university student in his previous life.

   University lecturer said this, the biggest emotion is that compound interest calculation is one of the greatest inventions of mankind. In his opinion, he didn't know that it was the **** who invented such a deceiving thing.

   As for usury, the compound interest calculation is used more bastards. They use a concept called equal debt service.

   was intentionally distorted by them. Just take an example, borrow 24,000 yuan, and the one-year monthly interest is 2% handling fee, 24000/12+24000*2%=2000+480=2480.

   A total of 29,760 yuan for the whole year. After deducting the principal of 24,000, the interest of 5,760 yuan, the annual interest is 24%. However, it doesn't count.

   Their algorithm will be month 0, you get 24,000 yuan and owe a principal of 24,000 yuan.

   In the first month, you repaid 2,000 yuan + 24,000 yuan with 2% interest, and owed 22,000 yuan in principal.

   In the second month, you repaid 2,000 yuan + 24,000 yuan with 2% interest, and owed 20,000 yuan in principal.

   In the third month, you repaid 2,000 yuan + 24,000 yuan with 2% interest, and owed 18,000 yuan in principal.

  …In the 12th month, you repaid 2,000 yuan + 24,000 yuan with 2% interest, and the 2,000 principal owed will be terminated within this month.

   One problem is that the 24,000 yuan is not used for one year and paid in one lump sum, but in installments. Each period is calculated based on the interest on the principal of 24,000 yuan.

   Even if it is the last 12 months and only 2,000 yuan of principal is left, the interest of 480 yuan per month is still paid according to the principal of 24,000 yuan.

  In other words, if you borrow 2,000 yuan, you still have to pay interest on the principal of 24,000 yuan, not 2,000 yuan.

  The correct way to open it should be that in the first month, there is no problem according to the 2% interest you paid back 2,000 yuan + 24,000 yuan.

   Starting from the second month, you should be charged 2% interest of 2,000 yuan + 22,000 yuan.

   Starting from the 3rd month, you should have to pay 2% interest of 2,000 yuan + 20,000 yuan.

  …Starting from the 12th month, you should pay 2% interest on 2000 yuan + 2000.

   In other words, your annual loan usage figure is not 24,000 yuan, but 13,000 yuan. (24,000 yuan + 22,000 yuan + 20,000 yuan...+2000)/12=13,000 yuan.

   means that the annual interest of 24,000 yuan is 24% paid for 13,000 yuan. The real interest loan cost is 5,760 yuan divided by 13,000 yuan, and the annual interest is 44.3%, not the so-called 24%, which is nearly double the interest.

   In practice, the 2% monthly interest on usury loans is already a low level. This is nothing but a **** thing like a deceptive routine loan.

   (end of this chapter)