ANNUALIZE

1. The conversion of a rate from any length into a rate which reflects a rate on an annual basis (yearly). It is often employed on rate which lasted for less than a year, and often does not consider the effects of compounding. The annualized rate is not considered as a guarantee but only serve as an estimate, whose accuracy is based on the variance of the rate. This rate is also referred as "annualized return" and is almost the same with "run rate."
2. The conversion of a taxation period which is less than a year into an annual (yearly) basis. It aids income earner in planning an effective tax plan and manage the tax implications.

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