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effective interest rate

   Also found in: Acronyms, Wikipedia 0.01 sec.
Effective Interest Rate
The annual rate at which an investment grows in value when interest is credited more often than once a year.

effective interest rate

The actual interest rate of a loan,regardless of the face interest rate or the rate quoted.See annual percentage rate.



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SL Green completed a refinancing of the first mortgage loan on 485 Lex with a 10-year interest only mortgage with effective interest rate of 5.
Average net consolidated assets (billions of dollars) 4,149 4,379 4,737 5,148 Effective interest rate (percent) (2) Rates earned Interest-earning assets 8.
Since the truck's payments make you effectively borrow more to buy the farm, your effective interest rate on the new rig is the 7.
 
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