The term “annualized” is a financial term that is often used in the world of investments, loans, and other financial transactions. It is a term that is used to describe the rate of return or interest over a period of one year. In this article, we will explore the meaning and definition of annualized, its origin, associations, synonyms, antonyms, and example sentences.
Definitions
Annualized is defined as a rate that has been calculated over a period of less than one year but is expressed as if it were for a full year. It is a way of projecting the rate of return or interest over a longer period of time, based on the rate that has been observed over a shorter period.
Origin
The term “annualized” is derived from the word “annual,” which means occurring once every year. The first recorded use of the word “annualized” was in the early 20th century, in reference to interest rates on loans.
Meaning in different dictionaries
According to Merriam-Webster, annualized means “to calculate or adjust (something) so as to reflect a rate for a whole year that is based on a rate for a shorter period.” Oxford English Dictionary defines it as “expressing or relating to a rate on the assumption of it being maintained or repeated for a year.”
Associations
Annualized is often associated with financial transactions, such as investments, loans, and interest rates. It is used to project the rate of return or interest over a longer period of time, based on the rate that has been observed over a shorter period.
Synonyms
Some synonyms of annualized include projected, extrapolated, estimated, and calculated.
Antonyms
The antonyms of annualized include actual, realized, and historical.
The same root words
The same root words as annualized include annual, annually, and annuity.
Example Sentences
- The annualized rate of return on the investment was 8%, based on the observed rate over the past six months.
- The interest rate on the loan was annualized at 6%, even though the loan term was only six months.
- The company’s revenue was annualized to project its expected earnings for the year.
- The stock’s price was annualized to estimate its potential value over the next 12 months.
- The bond’s yield was annualized to compare it with other investment options.