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Definition of

Annual Equivalent Rate


UK notional annual compound interest rate in the United Kingdom, a way of expressing different interest rates charged over different periods as an annual rate equivalent to a single payment of interest made on the anniversary of the loan and each subsequent year to repayment.

Related definitions of "Annual Equivalent Rate"

Definitions of ’Annual Equivalent Rate’ and meaning of ’Annual Equivalent Rate’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’Annual Equivalent Rate’ and other financial terms with our online QFINANCE Financial Dictionary.

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