equivalent annual rate


Also found in: Acronyms.

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.
References in periodicals archive ?
Each one charges you in terest at an annual percentage rate (APR) or equivalent annual rate (EAR), which allows you to make a basic assessment of how much each type of credit will cost.
Each one charges you interest at an annual percentage rate (APR) or equivalent annual rate (EAR), which allows you to make a basic assessment of how much each type of credit will cost.
M&S Current Account customers will benefit from a transparent account structure, with an automatic PS500 overdraft, the first PS100 of which is interest-free and the remainder to be charged at 15.9 per cent equivalent annual rate.
This account requires a minimum deposit of just pounds 250 per month and, although it is a limited offer, it also has the added benefit of 0% EAR (equivalent annual rate) overdraft rate for an unlimited period.
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