equivalent annual rate

Also found in: Acronyms

0.03 sec.

equivalent annual rate [i′kwiv·ə·lənt ¦an·yə·wəl ′rāt]

(industrial engineering)

A measure used in setting up a monthly rate on a comparable basis for each of the months regardless of their variation in working days, or for making the rate comparable with an annual rate regardless of the variation in working days during each month.

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