Seven days and the way to start, specific

1. 7-day annualized rate of return

Seven-day annualized rate of return is the annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days. The daily income of money funds will change constantly with the operation of fund managers and the fluctuation of money market interest rates. In fact, it is unlikely that the fund's income will remain unchanged for one year.

Income calculation formula: 7-day annualized rate of return = 7-day total income.

For example, the yield of a money fund in the past seven days has been 0.07%, so the average daily yield in these seven days is 0.0 1%, which is 3.65%(0.07%/7x365).

Index, 7-day annualized rate of return is an important indicator for investors to choose investment funds. Usually, the deposit wealth management products you see also adopt annualized rate of return as the pricing method. 、

Second, the annual interest rate

The annual interest rate refers to the deposit interest rate for one year. The so-called interest rate is the ratio of interest amount to deposit principal or loan principal within the term. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage.

Income calculation formula: annual interest rate = one-year interest ÷ principal × 100%.

For example: deposit 100 yuan,

The bank promised to pay an annual interest rate of 4.2%

Then the bank will pay 4.2 yuan interest next year.

The calculation formula is 100×4.2%=4.2 yuan.

So as long as it is converted according to the calculation formula, it can be understood as the conversion of seven-day annualization and annual interest rate.

2. How to calculate the annualized interest rate and annual interest rate?

Annualized interest rate: annual total income ÷ (principal x time) × 100%.

Annual interest rate: annual interest rate ÷ principal × 100%

The annual interest rate refers to the deposit interest rate for one year. The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal in a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage.

When the economic development is in the growth stage, the investment opportunities of banks increase, the demand in loanable funds increases and the interest rate rises; On the other hand, when the economy is in a downturn and the society is in a depression, banks' willingness to invest will decrease, so will the demand for loanable funds, and the market interest rate will generally be lower.

influencing factor

Central bank policy

Generally speaking, when the central bank expands the money supply, the total supply in loanable funds will increase, the supply exceeds demand, and the natural interest rate will decrease accordingly; On the contrary, the central bank implements a tight monetary policy, reducing the money supply, so that loanable funds's demand exceeds supply, and interest rates will rise accordingly.

price level

Market interest rate is the sum of real interest rate and inflation rate. When the price level rises, the market interest rate also rises accordingly, otherwise the real interest rate may be negative. At the same time, due to rising prices, the public's willingness to deposit will decrease, while the loan demand of industrial and commercial enterprises will increase. The imbalance between deposit and loan caused by loan demand exceeding loan supply will inevitably lead to an increase in interest rates.

Stock and bond markets

If the securities market is on the rise, the market interest rate will rise; On the contrary, interest rates are relatively low.

International economic situation

Changes in a country's economic parameters, especially the exchange rate and interest rate, will also affect the fluctuation of interest rates in other countries. Naturally, the rise and fall of the international securities market will also bring risks to the interest rates faced by international banking business.

Summary: Investment is risky and needs to be cautious.

References:

Xie Ping, Qin Yuan. Analysis on the effect of interest rate policy in China in recent years. China hownet, 2003.

Bi Xiaowen, Feng Yumei. Research on the Influence of Interest Rate Adjustment on the Volatility of China Stock Market —— Based on the Empirical Analysis of Interest Rate Increase in 2004. Inner Mongolia science and technology and economy, 200

Wujin, Guo Jianwei. Analysis on the implementation effect of interest rate policy in 2006. China HowNet, 2007.

Third, the calculation method of annualized interest rate

Suppose that the return period of a wealth management product is one year and the yield is B, then the annualized interest rate is R.

r=( 1b)^a- 1

4. How to calculate the annualized interest rate and annual interest rate?

Difference between annualized interest rate and annual interest rate