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Effective annual interest rate

   Also found in: Acronyms, Wikipedia 0.04 sec.
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of compounding.


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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.
 
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