Equivalent quarterly interest rate
21 Feb 2020 The effective annual interest rate is the interest rate that is actually earned or the effective interest rate, the effective rate or the annual equivalent rate. Quarterly compounding produces higher returns than semi-annual Sometimes, the interest rate gets compounded semi-annually, quarterly, or monthly. And that's how the effective interest rate (AER) differs from the annual interest 10 Dec 2018 Lenders typically state the annual interest rate on a loan regardless of how often interest is compounded. Some loans compound interest on a