Annual Equivalent Rate

/ˌænjuəl ɪˌkwɪvələnt 'reɪt/ noun
a figure which shows what the interest rate on an account would be if interest was paid for a full year and compounded.
Abbreviation AER

Dictionary of banking and finance. 2015.

Look at other dictionaries:

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  • Effective interest rate — The effective interest rate, effective annual interest rate, Annual Equivalent Rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual… …   Wikipedia

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