# Annual Interest Rate Definition

Posted on February 24, 2019 at 00:54 AM

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##### Effective interest rate - Wikipedia
The effective interest rate (EIR), 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.. It is used to compare the annual interest between loans with different compounding periods like week, month ...
##### Annual percentage rate - Wikipedia
The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.It is a finance charge expressed as an annual rate. Those terms have formal, legal definitions in some countries or legal ...
##### How to Find Simple Interest Rate: Definition, Formula ...
We are given the following values: the principal amount, P = 300, the annual interest rate, r = 3.25%, and the loan period t in years. The loan period is six months, so we have t = ½, calculated ...