The annualized rate of return refers to the rate of return earned with an investment period of one year. The annualized rate of return is 4.5%, so 10,000 yuan can earn 450 yuan a year.

Annual rate of return = [(investment income/principal)/number of investment days] * 360 ×100%

Annualized income = principal × annualized rate of return

According to the meaning of the question, 10,000 yuan, the annualized rate of return is 4.5%, then the annualized income = 10,000*4.5%=450,

So the annualized rate of return is 4.5%, then 10,000 yuan You can earn 450 yuan a year.

Extended information:

The derivation process of annualized return

The investor invests principal C in the market, and after time T, its market value becomes V. Then in this investment:

1. The income is: P=V-C

2. The rate of return is: K=P/C= (V-C)/C=V/C- 1

3. The annualized rate of return is:

(1)Y=(1+K)^N-1=(1+K)^(D/T)- 1 or

(2)Y=(V/C)^N-1=(V/C)^(D/T)-1

Where N=D/T Indicates the number of times an investor repeats investments within a year. D represents the effective investment time of one year, D=360 days for bank deposits, bills, bonds, etc., and D=250 days for stocks, futures and other markets.

4. In the case of continuous multi-period investment, Y=(1+K)^N-1=(1+K)^(D/T)-1

Among them: K=∏(Ki+1)-1, T=∑Ti

Baidu Encyclopedia—Annualized Return