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