Definition Of

Effective rate of interest

Effective rate of interest is the percentage rate of return on an annual basis, reflecting the effect of intra-year compounding.

Share it:

More from this Section

  • Justice Department Merger Guidelines
    Justice Department Merger Guidelines is the standards for evaluating the impact of a proposed merger on the concentration of assets or
  • Wholesale Bank
    Bank that provides services to large corporation is called wholesale bank, and the function of these banks is called whole sale banking.
  • Loan option
    Loan option is a device to lock in the amount and cost of borrowing for a designated time period by allowing a customer to borrow at a
  • Worlwide approach tax structure
    Worlwide approach tax structure— this approach to tax structure levies taxes on the income earned by firms that are incorporated in the host country ...
  • Tax Avoidance
    Tax Avoidance is lawful agreement or re-arrangement of the affairs of an individual or company intended to avoid liability to tax
  • European Economic Community (EEC)
    European Economic Community (EEC) is the European common market composed of Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg ...
  • FAS #52
    FAS #52 is a regulation of the Financial Accounting Standards Board requiring U.S. companies to translate foreign affiliate financial statements by the ...