# How Do I Calculate Aer Interest Rates?

To calculate AER interest rates, you use the formula AER = (1+ (r/n)) ^n-1; where r= interest rate and n=number of times the interest is paid. AER, Annual Effective Rate, is a measure of how much of the annual paid rate is equal to the interest being paid. The rate is used in the timing of interest paid.
Q&A Related to "How Do I Calculate Aer Interest Rates"
 Interest rates are the fees charged by loaning companies, such as banks, mortgage companies and other loan offices to pay for the money you borrow. These rates fluctuate from day http://answers.ask.com/Business/Finance/how_are_in...
 Interest Rate Differences Between Loans and Savings Interest rates are calculated similarly for loans and savings accounts, but there are differences. Savings accounts have an interest http://www.ehow.com/how_5143897_interest-rate-calc...
 Calculating the interest rate on a loan isn't that difficult. A person will need to take the principal amount and multiply it by the term of the loan and the annual percentage rate. http://wiki.answers.com/Q/How_does_one_calculate_t...
 PV 450,000 FV 1,500,000 N 20 Computes to a Rate of 6.2% http://answers.yahoo.com/question/index?qid=201210...
Similar Questions
Top Related Searches
Explore this Topic
AER is the Interest that is calculated under the fact that any interest paid is combined with the original balance and the next interest payment based on the slightly ...
AER is the abbreviation for annual equivalent rate. This rate helps to contrast interest rates across accounts and reflects not just the amount of interest but ...
AER stands for annual equivalent rate which shows the rate of interest a saver shall receive over a year assuming the cash will be left in the account for a whole ...