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Πώς να υπολογίσετε το Effective Annual Rate

Τι είναι το Effective Annual Rate;

Effective Annual Rate (EAR), also called Annual Equivalent Rate (AER), is the actual annual interest rate accounting for compounding within the year. It allows comparison of loans or investments with different compounding frequencies.

Οδηγός βήμα προς βήμα

  1. 1EAR = (1 + r/n)^n − 1
  2. 2r = nominal (stated) annual rate, n = compounding periods per year
  3. 3Daily compounding always gives a higher EAR than monthly, which is higher than annual
  4. 4APY (Annual Percentage Yield) on savings accounts IS the EAR

Worked Examples

Εισαγωγή
12% nominal, monthly compounding
Αποτέλεσμα
EAR = 12.68%
(1 + 0.12/12)^12 − 1
Εισαγωγή
12% nominal, daily compounding
Αποτέλεσμα
EAR = 12.75%
(1 + 0.12/365)^365 − 1

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