definition
Efficiency gains down year period
Annual yield = [(the investment income / principal) / number of days investment] * 365 × 100%
Change my
Actual revenue = principal × × annualized rate of return of investment Days / 365
So we can see here is the definition of a year's earnings, financial products if there is no one-year period, he also returns the number of days / 360 conversion
Base case
For example, a bank sells a financial product, known as the 91-day annualized yield of 3.1%, then you buy a $ 100,000, in fact, the interest you receive is 100,000 * 3.1% * 91/365 = 772.88 yuan, definitely not 3100 yuan. Also note that in general the bank's financial products like bank the same day as a regular
deposit
on the day of interest, due to the return of principal and interest. Financial products are
subscription
period,
the liquidation
period, and so on. During this period the principal is
not
to calculate
interest or count only current interest, such as a subscription period of financial products have five days between the due date to the principal liquidation period is 5 days, so your actual funds used is 10 days. The actual funds annualized rate of return is only 772.88 * 365 / (101 * 100 000) = 2.79%, assuming that the actual funds annualized rate of return is y, then the equation can be listed 100,000 * (91 + 10) * y / 365 = 772.88, stars y = 2.79%.
Absolute
return is 772.88 / 100,000 = 0.7728%.
[1]
For longer-term financial products, the subscription period, this time of liquidation may be negligible, but for seven days, or within one month of short-term financial products, this time there is a very big influence. For example, Bank of 7 days of financial products, known as the annualized rate of return is 1.7%, but at least to take up eight days of funds, 1.7% * 7/8 = 1.48%, has been with seven days' notice bank deposits almost the same, but the bank notice deposits either convenience or reliable degree, to be much higher than normal risk of financial products. So look at the annualized rate of return, not just look at absolute numbers it claims, and depends on the actual revenue figures.