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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Annual rate of return  

Definition 1.

There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. This is often called the annual percentage rate (APR). The annual percentage yield (APY), includes the effect of compounding interest.
 
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