How to calculate 2.5% annualized in 7 days?
Generally used in money funds. It converts the average expected return of fund products on the 7th day into annualized expected return. Its calculation formula is: expected daily rate of return = annual interest rate ÷360. If the annualized rate of return for seven days is 2.5%, it means that the average daily expected rate of return for the last seven days is equal to 2.5% divided by 360 is equal to 0.0069%.
Conversely, the annualized expected rate of return can also be calculated by the daily expected rate of return. For example, if the average expected rate of return of a fund is 0.0 1%, the annual expected rate of return of the fund is: equal to 0.0 1% divided by 360 and finally equal to 3.6%.