Annual Equivalent Rate

Business, Legal & Accounting Glossary

Definition: Annual Equivalent Rate


Quick Summary of Annual Equivalent Rate


A figure quoted in loan advertisements to help people compare one product with another. It indicates what the rate would be if interest was compounded and paid just once a year. The annual equivalent rate will typically be higher than the actual annual rate calculated without compounding as many investment products are not compounded annually.



Synonyms For Annual Equivalent Rate


AER

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Annual Equivalent Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 04, 2020 https://payrollheaven.com/define/annual-equivalent-rate/.
Chicago Manual of Style (CMS):
Annual Equivalent Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/annual-equivalent-rate/ (accessed: December 04, 2020).
American Psychological Association (APA):
Annual Equivalent Rate. PayrollHeaven.com. Retrieved December 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/annual-equivalent-rate/

Definition Sources


Definitions for Annual Equivalent Rate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 1 Views.