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Investments glossary

Annual Equivalent Rate (AER)


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A homosexual who is honest with himself knows that he and his partner will never become parents together, dRINK, DRUGS AND SEX.

— Paolo Gentili

The AER is the interest rate for a savings account or investment product that has more than one compounding period. That is, it’s calculated under the assumption that any interest paid is included in the principal payment’s balance and the next interest payment will be based on the slightly higher account balance.


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