Register now or log in to join your professional community.
Per annum means yearly or annually. For example, if a business charges its customers1.5% per month on any unpaid balance, the per annum rate is18%. The per annum rate was the result of1.5% X12 months in a year. When a supplier offers a credit customer an early-payment discount of2% for paying an invoice in10 days instead of paying the full amount in30 days, the supplier is giving up2% of the invoice amount in order to be paid20 days early. To compute the rate per annum we multiply both the "2%" and the "20 days" by18 (in order to get close to the365 days in a year). Hence, the per annum rate is approximately36%. To test this, let's assume that the invoice amount was $1,000 and the supplier states that the customer may deduct36% per annum if the invoice is paid20 days before the due date. The calculation will be $1,000 X36% per annum X20 days/360 days per year = $20. This amount agrees with the early-payment discount expressed as2% of the $1,000 invoice amount
Yearly
In finance and accounting per annum means per year. In general financial or fiscal year is matching to calendar year-365 or366 days starting from1st January to31st of December. But in some contracts (especially in loan agreements) you can see that calculations per annum are based on360 days within one year.
Per Annnum:
Per Annum Means1 year or each year, In Business there are different terms used like weekly means seven days, per month means month and so go on per annum means365 days. And remember its only a year not more thn a year. Start From Jan and ends with Decemeber.
Per annum means calendar year which may be stared from1st January to31st December or let to start from1st July to30 June refer days counting I.e.365 or360 consisting the merit of contract between two party.
"Annum" is the Latin word for "year". "Per annum" means: By the year; annually; yearly.
This term is mostly used in banking in reference to a sum of money paid or received.
For example, $100 at5% interest per annum is $100 (1 + .05) = $105.
Annually.
Per year.
Per annum mean per Year.
