term rate interest effective what is
Meaning of effective interest rate. What is it: investment or loan. In addition to the nominal.

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Definition effective interest rate

EFFECTIVE INTEREST RATE title: effective interest rate (FIN-FSCM-TRM-TM) (SAP Library - Glossary)
EFFECTIVE INTEREST RATE category: Transaction Manager (FIN-FSCM-TRM-TM)
EFFECTIVE INTEREST RATE explained:

An expression of the profitability or cost of a capital investment or loan.

In addition to the nominal interest, the effective interest rate calculation also takes other factors into account, such as charges, clearing dates, a premium/discount and repayment arrangements.

More terms such as effective interest rate in Dictionary E.

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