Effective annual rate.
Annual percentage rate.
The present value of an annuity is equal to the cash flow amount divided by the discount rate.
An annuity due has payments that occur at the beginning of each time period.
If unspecified, you should assume an annuity is an annuity due.
The future value of an annuity decreases as the interest rate increases.
An annuity is an unending stream of equal payments occurring at equal intervals of time.
Auto loan payment
Weekly grocery bill
Annuity interest rate
Frequency of the payments
Amount of each payment
Number of equal payments
Timing of the annuity payments
$40 paid quarterly for five years, starting today
$25 paid weekly for one year, starting one week from today
$50 paid every year for ten years, starting today
$15 paid at the end of each monthly period for an infinite period of time
$75 paid at the beginning of each month period for 50 years
6 percent compounded quarterly
6 percent compounded monthly
All the other answers have the same effective annual rate.
6 percent compounded annually
6 percent compounded semi-anually
Highest effective annual rate.
Highest stated rate.
Lowest effective annual rate.
Highest annual percent rate.
Lowest annual percentage rate.
The APR is equal to the EAR for a loan that charges interest monthly.
The APR is the best measure of the actual rate you are paying on a loan.
The APR on a monthly loan is equal to (1 + monthly interest rate)12 - 1.
The EAR is always greater than the APR.
The EAR, rather than the APR, should be used to compare both investment and loan options.