Calculation method: annualized rate of return = (return on investment/principal)/(investment days /365)× 100%, annualized rate of return = principal× annualized rate of return = principal× investment days /365.
1, 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 annual rate of return. The annualized rate of return is a theoretical rate of return, not an actual rate of return. For example, the daily rate of return is one in ten thousand, and the annualized rate of return is 3.65_ (an average of 365 days a year). Because annualized rate of return is variable, annualized rate of return is not necessarily the same as annualized rate of return.
2. Ten percent of annual income: for example, the principal 10000 yuan and the annual income is ten percent (10%), so the annual income is10000 *10% =1000 yuan.
3. Annual income and annualized rate of return are not the same concept: the daily rate of return is one in ten thousand, then the annualized rate of return is 3.65_ (the average year is 365 days). The annualized rate of return 10% does not necessarily represent the annual income 10%, and the annual income may be greater than 10% or less than 10%.
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 annual rate of return. It is the theoretical rate of return, not the real annualized rate of return that has been achieved. Annual rate of return converted from net income per 10,000 fund shares in the past seven days.
Difference between annual interest rate and annualized income
1, and the annual interest rate is in years. For example, the annual interest rate of one-year time deposit is 1.75%, and the annual interest rate of two-year time deposit is 2.25%. The annualized interest rate may be 1 day, 1 week to 365 days, which translates into one year's interest. The interest rate on a financial management day is two ten thousandths, and the annualized interest rate is calculated by multiplying two ten thousandths by 365 days, which is equal to 7.3%.
2. The annual interest rate cycle in different time periods is calculated on an annual basis. Generally speaking, the annual interest rate 1, 2, 5, etc. The income from financial management is calculated in multiples of one year. The calculation time of annualized interest rate is generally any number of days between 1-365 days. For example, the 7-day annualized interest rate of Yu 'ebao is 3.7%, which means that the 7-day interest rate of Yu 'ebao is converted into one-year interest rate. For another example, the interest rate of a wealth management product 1 month is 1%, and the converted annualized interest rate is 1% multiplied by 12, which is equal to 12%. If it is a multiple-choice question, Xiao has two wealth management products to choose from. One product can be taken at will, with an annualized income of 6% on the 7th, and the other product 1 year, with an annualized income of 6%. Obviously, the first product has more advantages, because the interest rate is the same, and the former is more flexible.
3. The discount rate of products calculated by annual interest rate and annualized rate of return is different. Bank term products are mostly calculated according to the annual interest rate. If it is a term wealth management product, it needs to be withdrawn in advance, and the discount rate is relatively high. Generally, the redemption of regular wealth management products can only be calculated according to the current period, which is not cost-effective. Products whose income is calculated by annualized rate of return are generally taken as they are saved, and there is no depreciation rate.