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 compound interest payable in arrears.

Which is essentially you take the original amount you borrowed, the interest rate, the amount, the fee that you pay every year is the interest rate times that original amount, and you just incrementally pay that every year.

Interest rate

The example shows the interest to pay in the last year of a three year loan. The interest rate is 10 percent.

All you have to do is promise to pay it back... at a huge rate of interest.

Rate is the periodic interest rate.

Nominal interest rate

Market interest rate

Effective interest rate

Interest rate (percentage)

America s Interest Rate Puzzle

China s Interest Rate Challenge

That's the interest rate.

166 effective interest rate.

The Real Interest Rate Risk

That's the annual interest rate.

Considered high risk borrowers, SMEs generally have to pay much higher interest rates than larger firms in in many African countries the interest rate exceeds 30 (Kwaku 2003).

To define an interest rate fully, allowing comparisons with other interest rates, both the interest rate and the compounding frequency must be disclosed.

Give an interest rate of ten .

If this premium prevails, Greece will have to pay 7.4 billion more in interest per year on its 271 billion debt than it would have to pay at the German rate.

Pay us even the interest right now!!!

You should pay for the interest too.

I'll pay you every penny with interest.

But interest rate convergence caused economic divergence.

This obviously depends in part on the amount of debt outstanding, the interest rate, and the country s growth prospects if it continues to pay.

In fact, there is no simple relationship between the size of a government s deficit or debt and the interest rate that it must pay.

The second adverse effect of deflation is to raise the real interest rate, that is, the difference between the nominal interest rate and the rate of inflation.

But when prices are falling, the real interest rate exceeds the nominal rate.

This would not create a budget deficit for rich countries. Recipient countries would have to pay the IMF a very low interest rate the composite average treasury bill rate of all convertible currencies.

Speaking of special privileges, the extraordinary differential between the 15 tax rate that capitalists pay on carried interest, dividends, and capital gains, and the 35 top marginal rate on work, that ordinary Americans pay, is kind of hard to justify without a touch of deification.

Now, let's say that's not enough for you because this interest rate is so high, you want the option to pay it by the hour.

But financial decentralization extends beyond interest rate liberalization.

C. Interest rate applicable to lump sum commutations

Let's say that the interest rate is 25 .

Her interest rate has of course gone up.

But the interest rate that Greece must pay buyers of its government bonds has shot up to a record high level of nearly 9 5.9 percentage points above the benchmark rate paid by Germany.

According to the followers of Knut Wicksell, the central bank must keep the market rate of interest near the natural rate of interest.

At present, the interest rate is less than 0.5 .

Emerging market interest rate spreads now are abnormally low.

Italy, however, chose to squander that interest rate advantage.

I'm going to charge the interest rate on that.

Eliminating special interest loopholes, like tax breaks for oil and gas, or for corporate jets, would not yield enough revenue to pay for a meaningful rate cut.

Because the inflation rate is also about 2 , this implies a negative real interest rate, which is confirmed by the interest rate of 0.6 on ten year Treasury Inflation Protected Securities (TIPS), which adjust interest and principal payments for inflation.

And in the meantime, it's going to pay me interest.

And it is the real interest rate not the money rate that counts for economic growth.