The
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

  • Exchange Rate
    Exchange Rate is the rate which would apply when changing the money (currency) of one country to that of another country.
  • Simulation
    David Hertz implemented the ideas of Simulation. Simulation is a statistically behavioral approach of risky project assessment .
  • Credit
    Credit means bank’s advance or investment that is made by commercial banks or other financial institutions in order to attain the objective of ...
  • Currency Option
    Currency Option is a foreign Currency Option gives the holder the right but not the obligation, to buy or sell a currency on or before a future
  • The balance sheet of bank
    The balance sheet of a bank is a financial statement of its liabilities and assets at a particular time, usually at the end of...
  • Derivative deposits
    Deposits created from different underlying transaction of bank is called derivative deposits. The prime underlying transaction includes ..
  • Remitting Bank
    Remitting Bank under documentary collections the bank to which the principal (exporter) has entrusted the handling of a collection.