How to Calculate the Effective Annual Rate of Interest (EAR) | FIN-Ed

#fin-ed
How to Calculate the Effective Annual Rate of Interest (EAR) | FIN-Ed

In this video, I am going to explain the effective annual interest rate and its calculation with a numerical example.

The effective annual interest rate is the interest rate that is actually earned or paid on an investment, loan or other financial product due to the result of compounding over a given time period. It is also called the effective interest rate, the effective rate, or the annual equivalent rate.

Thanks for watching ....!!!