Annual Equivalent Rate

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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.

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Synonyms For Annual Equivalent Rate

AER

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Annual Equivalent Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/annual-equivalent-rate/.
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Annual Equivalent Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/annual-equivalent-rate/ (accessed: April 19, 2024).
American Psychological Association (APA):
Annual Equivalent Rate. PayrollHeaven.com. Retrieved April 19, 2024
, 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 | 0 Views.