Wed, Jul 16th,2014
Annualize means to convert a rate of return from a periodic basis to on an annual basis. In the case of the interest rate earned on an investment, if the monthly rate is 1%, the investment would earn 12% (simple interest) on an annualized basis. This may simply be derived by multiplying the monthly return by 12. A rate quoted on a periodic (monthly or otherwise) is annualized so as to facilitate yearly comparisons.