Effective Annual Rate (EAR)

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17Feb 0

Effective Annual Rate (EAR)

Last Updated on 2020-02-24 by Admin

Notes

  • Measure of return.
  • Defined by time.
  • Compound interest.

 

Formula

$$\begin{aligned} 1 + EAR &= \left [ 1 + HPR \right]^{1 \over T} \end{aligned}$$

 

Calculator

 

 

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