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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.

단계별 가이드

  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

풀어진 예시

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

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