The real annual rate is the interest earned when returning the borrowed money one year later in a lump sum, as a percentage of the borrowed money. If you borrow 1 million yen from a financial company at a real annual rate of 10%, the interest to be repaid one year later is 100,000 yen. In other words, if you repay 1 million yen borrowed at a real annual rate of 10% one year later, the total repayment amount will be 1.1 million yen. The breakdown is 1 million yen in borrowing and 100,000 yen in interest. The actual repayment will be subject to interest on a daily basis. Cashing repayments are usually made little by little on a monthly basis, but interest accrual decreases as the principal decreases. If you borrow 1 million yen and you can return the borrowed money to half, the interest will be halved and the calculation formula will change little by little. The interest when the repayment is halfway is less than the interest immediately after the repayment because the amount of the borrowed principal is smaller. Suppose you borrowed 1 million yen with 12 payments over a year. If the real annual rate is 20%, the interest paid will gradually decrease and the total repayment amount will be about 1.11 million yen. If the period until repayment is 2 years (24 times), the interest will be about 220,000 yen. Once you have a general understanding of the actual annual rate of cashing repayments, it is advisable to check with the cashing company or use simulation software to calculate the specific repayment amount. In addition, when calculating on a daily basis, the daily interest is calculated by dividing the borrowed amount by the real annual rate by 365. The idea of a cashing loan is to calculate the interest at that time from the loan balance based on the real annual rate for each repayment date.