# 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.*

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**annual equivalent rate**— ➔ rate1 * * * annual equivalent rate UK US noun [C] ► BANKING, FINANCE AER(Cf. ↑AER) … Financial and business terms**annual equivalent rate**— noun An interest percentage rate calculated as if it were paid and compounded once a year (abbrev AER) • • • Main Entry: ↑annual … Useful english dictionary**Annual Equivalent Rate - AER**— Interest that is calculated under the assumption that any interest paid is combined with the original balance and the next interest payment will be based on the slightly higher account balance. Overall, this means that interest can be compounded… … Investment dictionary**Annual percentage rate**— Parts of total cost and effective APR for a 12 month, 5% monthly interest, $100 loan paid off in equally sized monthly payments. The term annual percentage rate (APR), also called nominal APR, and the term effective APR, also called EAR,[1]… … Wikipedia**annual percentage rate**— APR The annual equivalent rate of return on a loan or investment in which the rate of interest and charges are specified in terms of an annual rate of interest. Most investment institutions are now required by law to specify the APR when the… … Accounting dictionary**annual percentage rate**— APR The annual equivalent rate of return on a loan or investment in which the rate of interest specified is chargeable or payable more frequently than annually. Most investment institutions are now required by law to specify the APR when the… … Big dictionary of business and management**rate**— The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… … Financial and business terms**Rate of return**— In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… … Wikipedia**Equivalent annual cost**— In finance the equivalent annual cost (EAC) is the cost per year of owning and operating an asset over its entire lifespan. EAC is often used as a decision making tool in capital budgeting when comparing investment projects of unequal lifespans.… … Wikipedia**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