Annual Equivalent Rate

Business, Legal & Accounting Glossary

Definition: Annual Equivalent Rate

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


Cite Term

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Page URL
Modern Language Association (MLA):
Annual Equivalent Rate. Payroll & Accounting Heaven Ltd.
May 27, 2023
Chicago Manual of Style (CMS):
Annual Equivalent Rate. Payroll & Accounting Heaven Ltd. (accessed: May 27, 2023).
American Psychological Association (APA):
Annual Equivalent Rate. Retrieved May 27, 2023
, from website:

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 | 0 Views.