What does EAR stand for in finance?

فنانس میں ای اے آر کا کیا مطلب ہے؟

Effective Annual Rate

Equivalent Annual Rate

Estimated Annual Rate

Economic Annual Rate

In finance, EAR stands for Effective Annual Rate.

It is also referred to as the Effective Annual Interest Rate.

It is the rate of interest that is paid on a loan or investment after the compounding period is considered.