How to calculate the annualized rate

Annualized interest rate: total annual income ÷ (principal x time) × 100%, such as investment 100 million, annual income of 200,000, annualized rate of return of 20 ÷ 100 × 100% = 20%. Annual interest rate: annual interest rate ÷ principal × 100%, for example, 100 million is deposited in the bank, with an annual interest rate of 20,000 and an annual interest rate of 2 ÷100% = 2%. Annualized rate is to calculate the yield of a product in years, and convert the daily interest rate, weekly interest rate and monthly interest rate into years. In fact, he is a theory, not a real rate of return. The calculation method of the actual annual interest rate is that the interest is equal to the principal multiplied by the annualized interest rate multiplied by the time, and the time unit is years. In fact, it is just an ideal state, calculated according to short-term benefits. For example, if the annual interest rate is 1.5% and your principal is saved for one year, the interest you get is 65438+ 0.5% of the principal, so you can calculate your daily income and the approximate interest you can get for one year. Now the demand for loans is becoming more and more common, but not everyone can get loans through conventional channels such as banks. So those who have poor credit information and can't get loans from banks turn to online loans. Whether buying wealth management products or loans, we will often come into contact with the concept of annualized rate of return. Although the expressions of annualized rate of return and annual interest rate are similar, they are quite different. Today, Dong Qing Bian Xiao will help you understand these two concepts, so as to avoid investment risks caused by ignorance and avoid losses in real investment. The interest rate of bank loans is divided into many concepts, such as annual interest rate, annualized interest rate, daily interest rate and monthly interest rate. The mutual transformation between them requires very professional people to try and understand, and even some bank tellers don't know how to transform and what they mean. Therefore, this has caused many borrowers a great headache, but they just don't understand what is obviously very important. Therefore, many interest-filled guarantee companies use the ambiguity of the borrower's concept of loan interest rate to set traps for the borrower, confuse the concept in a very tempting way, take it out of context, and make the borrower feel cheated, thus bringing high interest risk to the borrower. If the borrower doesn't notice, he will be cheated sooner or later.