Effective Interest Rate Explained - Search Videos

Effective annual interest rate (EAR)

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Effective annual interest rate (EAR)

Effective annual interest rate versus nominal interest rate. It’s one of the things to look at when choosing where to open a savings account. Bank A offers you a 6% nominal annual interest rate, and so does Bank B. At Bank A, the interest is credited to your account annually, at Bank B monthly. Does that make any difference? 12 times 0.5% ...

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