Calculating the rate of return is a pure mathematical knowledge. To calculate the income, you need to know the investment amount, investment period, and rate of return. The concept of investment amount is easy to understand, but many people do not grasp the relationship between investment period and investment rate of return clearly enough. In investment science, the longer the creditor's funds are occupied, the worse the liquidity of the funds, so the debtor has to bear a higher rate of return to make up for the losses caused by the reduced liquidity.

How to calculate the return?

Investors generally see directly that the investment period is directly proportional to the rate of return, but many people do not understand the true meaning of the rate of return. This rate of return is the annualized rate of return. For example, our platform has three investment periods and investment rate of return targets. The annualized return of the 90-day target is 9%, the annualized return of the 180-day target is 10%, and the annualized return of the 360-day target is 11%. So:

90-day investment income: investment amount × 9%

180-day investment income: investment amount × 10%

360-day investment income : Investment amount Calculation method:

90-day investment income: investment amount×9%÷12×3

180-day investment income: investment amount×10%÷12×6

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360-day investment income: investment amount×11%÷12×12

We divide the annualized interest rate by 12 to get the monthly interest rate, and then use this as the base to calculate the target investment period interest. If the underlying period is calculated on a daily basis, we need to divide the annualized interest rate by 365 to get the daily interest rate, and multiply this by the number of days of investment to calculate the investment income.

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