Economics
Effective annual rate
Effective annual rate is a financial measure of value, return, cost, or cash flow.
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EAR = ((1 + r / m)ᵐ − 1) × 100%
- 01Given
- 02Calculation
- 03Answer
What it means
Effective annual rate is a financial measure of value, return, cost, or cash flow.
How it works and where it is used
Use this calculation for planning deposits, loans, recurring payments, investments, and the time value of money.