What Is an Annualized Rate?

The annualized interest rate refers to the interest rate discounted to the whole year through the inherent yield of the product.

Annualized interest rate

discuss
The annualized interest rate refers to the interest rate discounted to the whole year through the inherent yield of the product.
Chinese name
Annualized interest rate
Overview
Assume a financial product's return period is a year
Brief introduction
Annualized interest rate is inherent to the product
Calculation
(1 + b) minus 1
Calculation
Assume that the return period of a financial product is a year and the rate of return is b, then the annualized interest rate r
r = (1 + b) ^ a-1

IN OTHER LANGUAGES

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