annual

(noun)

a plant which naturally germinates, flowers, and dies in one year

Related Terms

Examples of annual in the following topics:

  • Impact of Payment Frequency on Bond Prices

    • Payment frequency can be annual, semi annual, quarterly, or monthly; the more frequently a bond makes coupon payments, the higher the bond price.
    • Payment frequency can be annual, semi annual, quarterly, monthly, weekly, daily, or continuous.
    • Where n is the number of terms or number of payments n =1 (annually), n = 2 (semi-annually), n = 4 (quarterly)... and i is the per period interest rate.

  • Calculating the Yield of a Single-Period Investment

    • Another common way of calculating yield is to determine the Annual Percentage Rate, or APR.
    • To find the effective APR, the actual amount of interest you would accrue per year, we use the Effective Annual Rate, or EAR.
    • The EAR is a form of the Annual Percentage Yield (APY).
    • The Effective Annual Rate is the amount of interest actually accrued per year based on the APR. n is the number of compounding periods of APR per year.
    • The Annual Percentage Yield is a way or normalizing the nominal interest rate.

  • Percentage Returns

    • There are two types of percentage returns: total and annual.
    • When the length of time of the investment is one year, the total and annual returns are equivalent.
    • The ROI can be annualized by dividing by the number of years between the purchase and sale of the security.
    • To do so, analysts use other formulas, like the compound annual growth rate (CAGR):
    • Another common method for finding the annual return is to calculate the internal rate of return (IRR).

  • Calculating Values for Different Durations of Compounding Periods

    • Finding the Effective Annual Rate (EAR) accounts for compounding during the year, and is easily adjusted to different period durations.
    • But suppose you want to convert the interest rate into an annual rate.
    • The effective annual rate (EAR) is a measurement of how much interest actually accrues per year if it compounds more than once per year.
    • The effective annual rate for interest that compounds more than once per year.

  • Temperate Grasslands

    • Temperate grasslands are areas with low annual precipitation, fluctuating seasonal temperatures, and few trees.
    • Temperate grasslands have pronounced annual fluctuations in temperature, with hot summers and cold winters.
    • The annual temperature variation produces specific growing seasons for plants.
    • Annual precipitation ranges from 25 cm to 75 cm (9.8–29.5 in).
    • Because of relatively-lower annual precipitation in temperate grasslands, there are few trees, except for those found growing along rivers or streams.

  • The Disclosure Process

    • This is an annual report required by the U.S.
    • Although similarly named, the annual report on Form 10-K is distinct from the often glossy "annual report to shareholders," which a company must send to its shareholders when it holds an annual meeting to elect directors (though some companies combine the annual report and the 10-K into one document).
    • In addition to the 10-K, which is filed annually, a company is also required to file quarterly reports on Form 10-Q.
    • The SEC requires businesses to file an annual report known as a Form 10-K in order to disclose relevant financial information.
    • Define and outline the annual report known as a Form 10-K.

  • Types of Organizational Branding Deliverables

    • An annual report is a comprehensive report on a company's activities throughout the preceding year.
    • Annual reports are intended to give shareholders and other interested parties information about the company's activities and financial performance.
    • Most jurisdictions require companies to prepare and disclose annual reports, and many require the annual report to be filed at the company's registry.
    • In addition to providing detailed financial information, an annual report can also be a tool to convey, re-establish, and reinforce the brand message of an organization.
    • At the same, annual reports can also serve as a way to remind employees about the company message and its strengths.

  • Compounding Frequency

    • Financial analysts always define an interest rate as an annual term, called the Annual Percentage Rate (APR).The APR come from the Federal Reserve's regulation that helps prevent fraud.For example, do you consider a 1% interest rate a good interest rate to charge a borrower?
    • Unfortunately, we do not know the time period this interest rate applies to because the time period was omitted.If the 1% is annual, then it is an excellent interest rate for a loan.However, if it is daily, subsequently, this rate is terrible.Borrower took money from a loan shark.For this book, we define all interest rates in annual terms, unless otherwise stated.
    • Banks and finance companies usually calculate interest payments and deposits monthly.Thus, we adjust the present value formula for different time units.If you refer to Equation 11, we add a new variable, m, the compounding frequency while APR is the interest rate in annual terms.In the monthly case, m equals 12 because a year has 12 months.
    • For example, you deposit $10 in your bank account for 20 years that earns 8% interest (APR), compounded monthly.Consequently, we calculate your savings grow into $49.27 in Equation 12: If your bank compounded your account annually, then you would have $46.61.
    • We can convert any compounding frequency into an APR equivalent interest rate, called the effective annual rate (EFF).From the previous example, we convert the 8% APR interest rate, compounded monthly into an annual rate without compounding, yielding 8.3%.We show the calculation in Equation 13.The EFF is the standard compounding formula removing the years and the present value terms.

  • Bonds Issued at a Premium

    • Assume a business issues a 10-year bond that has an effective annual interest rate of 6%, with a face value of $100,000.
    • The company must pay $6,000 in interest annually, so the company's annual interest expense equals $5,000.
    • For example, assume a business issues a 10-year bond that pays 6% interest annually, with a face value of $100,000.
    • Using the example from above, the $10,000 premium would be divided by 10 annual interest payments.
    • The company must pay $6,000 in interest annually, so the company's annual interest expense equals $5,000.

  • Chapter Questions

    • Compute the present value if a friend repays a loan over 3 months with an annual interest rate of 12% and the monthly payment of $100.First payment begins at the end of the first month.
    • 12.If you deposit $500 into a savings account that earns 5% APR for 30 years, calculate the ending balance for the following compounding frequencies: annual, monthly, and continuous.
    • 13.If you are earning 16% APR on your investment that is compounded quarterly, compute the effective annual rate.
    • You have save an ordinary annuity with a balance of $50,000.Calculate your annual withdrawal payments if the annuity earns a 5% APR which you withdraw over 15 years.
    • You reside in Malaysia and have an overseas bank account in Europe.You expect the following annual payments and exchange rates.Malaysia uses the ringgits (rm) currency while the Eurozone uses the euro, €.