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effective rate of interest

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effective rate of interest
The rate of interest that incorporates compounding in the calculation used to determine the amount of interest to be credited to an account. For amounts invested during an entire year, the annual effective rate of interest multiplied by the principal will equal the amount of earned interest.
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Under the constant-yield method, interest is accrued by applying an effective rate of interest to the unpaid balance of a loan for a given period.
Rule of 78's no longer acceptable by LaBelle, Brett E. / The Tax Adviser
It indicates the effective rate of interest paid per year.
Cash in on low mortgage rates by Brown, Carolyn M. / Black Enterprise
During the second quarter of 2005, GTI exited $285 million notional amount of existing interest rate swaps at a cost of approximately $5 million, thereby converting the effective rate of interest on the underlying debt back to a fixed rate.
GrafTech Reports Second Quarter 2005 Results by Business Wire
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