905,650,985 visitors served.
905,650,985 visitors served. |
|
 Dictionary/ thesaurus |  Medical dictionary |  Legal dictionary |  Financial dictionary |  Acronyms |  Idioms |  Encyclopedia |  Wikipedia encyclopedia | ? |
Effective Annual Interest Rate |
Also found in: Acronyms, Wikipedia | 0.03 sec. |
|
Effective Annual Interest Rate An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:  Notes: Consider a stated annual rate of 10%. Compounded yearly, this rate will turn $1000 into $1100. However, if compounding occurs monthly, $1000 would grow to $1104.70 by the end of the year, rendering an effective annual interest rate of 10.47%. Basically the effective annual rate is the annual rate of interest that accounts for the effect of compounding. Effective annual interest rate An annual measure of the time value of money that fully reflects the effects of compounding. |
|
? Mentioned in | ? References in periodicals archive | |
|---|---|---|
There are four ongoing components to the effective annual interest rate of the bonds. Unfortunately, most consumers do not realize they are actually taking out a loan with an effective annual interest rate of up to 700% 5 percent of principal amount, resulting in an effective annual interest rate of 5. |
 |
| Free Tools: |
For surfers:
Browser extension |
Word of the Day |
Help
For webmasters: Free content NEW! | Linking | Lookup box | Double-click lookup | Partner with us |
|
|---|
Disclaimer |
Privacy policy |
Feedback | Copyright © 2008 Farlex, Inc.
Printer friendly
Cite / link
Email
Feedback
Add definition
Effective Annual Interest Rate