In fact, the meaning of annualized rate of return of 4.5% can be interpreted as: total interest income = investment amount *4.5%/ 12* time period.

For example:

If the annualized rate of return of a wealth management product is 4.5% and the term is 180 days, and we invest 65,438+10,000 yuan, then the income after the term expires is:

Total interest income =100000 * 4.5%/12 * 6 = 2250 yuan.

Therefore, if you invest in 180-day wealth management products, the annualized income will be 4.5% and the total income will be 2250 yuan. Therefore, the annualized rate of return is not its number, but the actual income.

Extended data

Difference between annual rate of return and annualized rate of return

The annual rate of return is the ratio of the actual return of an investment within one year.

The annualized rate of return is the return of investment (commonly used by money funds) within a period of time (such as 7 days). Assuming that the year was at this level, the annual rate of return was converted. Because annualized rate of return is variable, annualized rate of return is not necessarily the same as annualized rate of return.

Baidu encyclopedia-annualized rate of return