EFFECTIVE INTEREST RATE Definition

Bookmark and Share

EFFECTIVE INTEREST RATE is the cost of credit on a yearly basis expressed as a percentage. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the note.

Learn new Accounting Terms

PAYDOWN is the systematic reduction in principal of a mortgage- or asset-backed security resulting in a series of principal payments, either scheduled or unscheduled.

LEV (LEVA) is a currency of Bulgaria.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.