1. annualized interest rate:

Suppose that the income period of a wealth management product is one year, the rate of return is B, and the annualized interest rate R is the difference between the sum of 1 and b and the sum of a power and 1, that is, the power of (1+b) minus1; The annualized interest rate is the interest rate discounted to the whole year through the inherent rate of return of products.

The annualized interest rate is the interest rate discounted to the whole year through the inherent rate of return of products.

Second, the calculation method

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

Seven-day annualized rate of return

1. Under different income carry-over methods, the calculation formula of seven-day annualized rate of return should also be different. At present, there are two ways to carry forward 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.

2. The other is daily dividend, and daily carry-over is equivalent to daily compound interest, in which the calculation formula of simple interest is (∑ ri/7) × 365/10000 ×100%), and the calculation formula of compound interest is: (∏ (1+ri/).

3. It can be seen that the 7-day annualized rate of return is calculated according to the 7-day income, and the 30-day annualized rate of return is calculated according to the latest 1 month income.

4. The establishment of this index is mainly to provide investors with more intuitive data for investors to refer to when comparing the income of money funds with other investment products. In this indicator, the rate of return in the last seven days is determined by seven variables, so the same income in the last seven days does not mean that the net income per 10,000 fund shares in the seven times used for calculation is exactly the same.