Geannualiseerde

Geannualiseerde refers to a financial concept used to express a periodic rate, such as a monthly or quarterly rate, as an equivalent annual rate. This allows for a standardized comparison of different investment or loan options that have different compounding or payment frequencies. The process involves taking the periodic interest rate and compounding it over the number of periods in a year. For example, if an investment yields 1% per month, its geannualiseerde rate would be higher than 12% due to the effect of compounding. The formula generally involves raising one plus the periodic rate to the power of the number of periods in a year, and then subtracting one. This is a crucial tool for consumers and investors to understand the true cost of borrowing or the effective return on investment over a full year, regardless of how frequently interest is calculated or paid. It helps to avoid misinterpretations that might arise from simply multiplying a short-term rate by the number of periods in a year, especially when compounding is involved. The concept is widely used in mortgages, savings accounts, and credit cards.