The calculation method of annualized interest rate is as follows:
1. Calculate the return on investment: return on investment = (investment principal+investment income)/investment principal ×100%;
2. Calculate annualized rate: annualized rate = (return on investment/investment period) × 100%.
For example, if an investor invests 1 1,000 yuan, the investment period is 1 year, and the return on investment is 1 1,000 yuan, then the return on investment is (1 1,000+11,000)//kloc-0.
In short, the annualized rate is an index to measure the return on investment, which can reflect the return on investment of investors in a certain period of time. The formula is: annualized rate = (return on investment/investment period) × 100%, and the calculation method is: calculate the return on investment first, and then calculate the annualized rate.