It is important to check the real annual rate when borrowing money. The real annual rate method is characterized by the difference in the total repayment amount depending on the time required for repayment and the pace of repayment even if the same amount is borrowed. Make a detailed cashing repayment plan and grasp the repayment amount. The real annual rate is the ratio of interest to borrowed money when it is paid in a lump sum one year later. The real annual rate is calculated on the sum of all the amounts paid by the borrower for repayment, so it includes not only interest but also fees and stamp duty. The real annual rate must be calculated as interest if there are any expenses incurred in addition to interest on repayment. Please note that cashing companies that charge stamp fees and fees in addition to the actual annual rate may be illegal. Loan sharks and others may use a method of reassuring them with a low annual yield and taking a large fee. Currently, the law requires that interest on cashing be presented at a real annual rate, but be careful not to be fooled by malicious companies. The real annual rate method allows accurate comparison of interest rates, and there is no problem even if there are differences in the repayment method and the number of repayments. Therefore, when you get a loan, make sure that the display is a real annual rate. However, it is very troublesome to calculate the real annual rate, and it is difficult to calculate the interest with a calculator etc., so the disadvantage of the real annual rate is that you have to use a computer etc.