It is Total Interest expense for the year
Total outstanding liabilities
Where compounding occurs more than once in a year, then the effective annual interest rate is denoted as:
(1+i/n)n – 1
Here n= number of periods of compounding
i= nominal interest rate given
All the interest rates are annualized such that there is common comparison among the securities.
Search & Explore : Management Dictionary
Browse definitions and meaning of more concepts and terms similar to Effective Annual Interest Rate. The Management Dictionary covers definitions and overview of over 7000 business concepts from 6 categories.
Related Business Content