effective annual interest rate


The actual annual interest rate that accrues, after taking into consideration the effects of compounding (when compounding occurs more than once per year).

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You should try and shop around to get the best effective annual interest rate you can to save money long term.

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The effective annual interest rate on the bond was four percent. This rate was higher than what the average bond was returning.

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Many credit card owners forget to figure out their effective annual interest rates when calculating their budget for credit card bills.

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