What is the annualized return and how is the annualized return calculated?

The annualized rate of return is only calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into adult rate of return, which is a theoretical rate of return and not a real rate of return obtained. For example, if the daily interest rate is 1/10,000, the annualized rate of return is 365 days in a normal year). The annualized rate of return, "year" refers to the one-year period, and the key is the word "hua", which means that it is not practical and is calculated from theory.

For example, some products advertise that the highest rate of return can be a two-year product, then this maximum rate of return refers to the total rate of return expected to maturity in two years may reach If calculated according to simple interest, the actual annual rate of return should be divided by , so that the annualized expected rate of return is actually only . For example, the seven-day annualized rate of return is the annual rate of return converted into the net income per 10,000 shares of currency in the past seven days.

Under different income carry-over methods, the seven-day annualized rate of return calculation formula should also be different At present, there are two income carry-over methods in the money market, one is daily dividends, monthly carry-over, which is equivalent to daily simple interest, and the other is daily dividends, which are equivalent to daily compound interest on a daily basis, where the simple interest calculation formula is: ( ri 7) 365 10000 shares 100% compound interest calculation formula is: ( ri 10000 shares) 365 7 100% of which, ri is the nearest ith calendar day (i =1,2.....

7) per 10,000 shares, **7-day annual yield is rounded to three decimal places. It can be seen that the 7-day annualized rate of return is calculated based on the 7-day return, and if the 30-day annualized rate of return is calculated based on the last 1-month return. The establishment of the annualized rate of return indicator is mainly to provide investors with more intuitive data, for investors to refer to when comparing the monetary ** income with other investment products In this indicator, the yield of the past seven days is determined by seven variables, so the last seven yields are the same, and it is not thought that the net return per 10,000 shares per 10,000 shares used to calculate the seven per day is exactly the same.

What is an annualized rate of return.

1. The annualized return is converted through the annualized rate of return, and the conversion formula of the annualized return:

Annualized Return = Principal Annualized Rate of Return.

2. The annualized rate of return is to convert the current rate of return (daily rate of return, weekly rate of return, and monthly rate of return) into an adult rate of return, which is a theoretical rate of return of jujube orange, not a real rate of return that has been obtained;

Annualized rate of return = [(investment income principal) investment days]*365 100%3, the actual annual return is not determined according to the annualized return, the approximate conversion formula:

Actual Return = Principal Annualized Rate of Return Number of days invested 3654, the difference between Annual Rate of Return and Annualized Rate of Return:

The annual return rate is the ratio of the actual return of an investment in one year;

The annualized rate of return is the annual rate of return of investment (commonly used by money) in a period of time (such as 7 days), assuming that it is at this level for a year. Because the annualized rate of return is variable, the annual rate of return is not necessarily the same as the annualized rate of return;

The annualized rate of return refers to the rate of return that can be obtained with an investment period of one year, and it is calculated as follows: annual rate of return = [(investment income principal) number of investment days] * 365 100%.

2. For example, if A invests 10,000 yuan in a wealth management product with a 14-day income of 16 yuan, then the annualized rate of return of this wealth management product is [(16 10,000) 14] *365 100%=.

Calculating the annualized rate of return requires a scientific calculator, but many times, we do not necessarily have a scientific calculator at hand, and ordinary calculators do not have the function of prescribing, so we need to use a simple calculation rule - the rule of 72. The so-called rule of 72 is to divide 72 by the number of years to double the investment, and you can get an approximate annualized rate of return.

For example, if an investment of 1 million yuan is increased to 2 million yuan after 10 years, what is its annualized rate of return? We divide 72 by 10 and get the result that the annualized rate of return on this investment is approximately equal to. If we use a scientific calculator to calculate, the result is that it is not much different from our approximate results.

This 72 rule can also be used in reverse, that is, when the annualized rate of return is known, calculate the number of years for which the money has doubled. For example, if the expected annualized rate of return of a bank wealth management product is 4%, how many years does it take to invest in this product to double the funds? We divide 72 by 4 and get a result of 18, which means that if the expected rate of return of 4% can be achieved, the money can be doubled in 18 years.

Not all calculations are exactly a doubling of the bankroll, but we can still use this rule to make quick estimates. For example, everyone wants to buy 10 times in 10 years, what is the annualized rate of return? Many people will divide 10 by 10 to come to the conclusion that it will rise 1 times in 1 year, but in fact this conclusion is wrong, because if it rises 1 times in 1 year, it will rise 1023 times in 10 years, and such ** has never been seen in history.

1. The annualized interest rate is the annual interest rate. The annualized interest rate is the interest rate that is discounted to the full year through the product's intrinsic rate of return. Assuming that the return period of a financial product is A year and the yield is B, then the annualized interest rate r is the difference between 1 and B and the power A and 1, that is, (1+B) to the power A minus 1.

Interest calculation formula: interest = principal annual interest rate time (years).

2. The annualized rate of return is calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into an adult rate of return, which is a theoretical rate of return and not a real rate of return obtained.

3. Example: For example, if a bank sells a wealth management product, the 60-day annualized income rate is 100,000 yuan, then you buy 100,000 yuan, and the interest you can actually receive is 100,000 * yuan.

The annualized rate of return is calculated by converting the current rate of return (daily, weekly, and monthly) into an adult rate of return, which is a theoretical rate of return, not a real achieved rate of return.

Annualized rate of return: Currency**, net income per 10,000** share over the past seven days, converted into annual yield. There are two ways to carry forward earnings in the money market**:1

Daily dividends, carried forward on a monthly basis", which is equivalent to daily simple interest, monthly compound interest; 2."Daily dividends, carried forward on a daily basis", which is equivalent to compound interest day by day.