Purchase this Calculator for your Website

 Share |   


Ultimate Calculators is a free service. If you would like to support us you can do so by cliking an ad on this website.

Effective Annual Rate

Effective Annual Rate is used to determine the actual annual rate that would be paid on a loan or investment if the stated annual rate is affected by compounding.

Effective Annual Rate Definition

Effective Annual Rate is the annual rate of interest that is equivalent to the nominal rate compounded more frequently.

Variables

EAR=Effective annual rate
K=Nominal interest rate
M=Compounding frequency per year

 


Effective Annual Rate Formula

 

 

 

 

 

 




HTML Comment Box is loading comments...