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Trading and Investment Terms

Annualized rate of return

The annual growth rate of investment is over a specified period of longer than one year.
The Annualized rate of return is also called the Compound growth rate.
It is the average return an investor has earned on the investments after a given interval says one year. 
The bank or the financial institution calculates this rate in terms of percentage.
If you make reinvestments, then you need to know the profit earned on all the investments together.
Three Easy steps to calculate:
a. The investment made in the initial year (the first year of investment)
b. Value of investment at the end of the year
c. Tenure of investment

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