1. The annual interest rate refers to the deposit interest rate within one year, generally expressed as a percentage of the principal. If the annual interest rate of a bank deposit is 5%, then the annual income of 10000 deposit is 10000*5%=500 yuan;
2. Annualized rate of return refers to the calculation method of converting daily rate of return/weekly rate of return/monthly rate of return into annual rate of return. It is not a real interest rate, but a theoretical value.
I. annualized rate of return
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.
2. Annualized rate of return The annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days. There are two ways to carry forward money market funds: 1. "Daily dividends are carried forward on a monthly basis", which is equivalent to daily simple interest and monthly compound interest; 2. "Daily dividends are carried forward daily", which is equivalent to daily compound interest.
Second, the seven-day annualized rate of return.
Under different income carry-over methods, the calculation formula of seven-day annualized rate of return should also be different. There are two ways to carry forward the income of money market funds. One is to pay dividends on a daily basis and carry them forward on a monthly basis, which is equivalent to daily simple interest and monthly compound interest; The other is daily dividend, which is carried forward on a daily basis, equivalent to daily compound interest, in which the formula for calculating simple interest is: (∑ ri/7) × 365/10000 ×100%, and the formula for calculating compound interest is: (∏ (1+ri/650).