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Annual equivalent rate  (AER) - Financial definition

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Translations:      FR  taux annuel équivalent (n.m.)     ES  tipo de interés anual equivalente (n.m.)     DE  äquivalenter Jahreszinssatz (n.m.) , entsprechender Jahreszinssatz (n.m.) 

  Concise definition of the term annual equivalent rate

The annual equivalent rate is the interest rate earned on an investment in a year after accounting for the effects of compounding interest.

 Additional information related to this definition

Definitions of related terms

Compound interest  •  Compounding

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