How Do You Work Out Aer Interest?

Answer

AER stands for annual equivalent rate. It is computed by compounding interest each time it is paid over the period of the loan using the current market interest rates.
Q&A Related to "How Do You Work Out Aer Interest"
I think you mean EAR and not AER. EAR means effective annual rate and it is the interest rate on a "per year" basis. The interest rate is a very general term and it can
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Ok, here is an explanation of the difference between the two and i hope it will help. You'll also see that it depends on how the interest is paid - annually or more frequently i.e
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I'm not sure I agree with joggerjayne on the last point-. I think the 2.5% AER figure takes account of the 'interest on monthly interest'. So if the money and accrued interest is
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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 ...
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 ...
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