Setup Menus in Admin Panel

Sharing the Knowledge!™

Finance Knowledge and Information

What does effective interest-rate method mean?

SEARCHING
Suggestion/Report Error
effective interest-rate method
Noun


A technique for calculating the actual interest rate in a period based on the carrying value of a financial instrument at the beginning of the accounting period and to amortize the cost of the instrument at a constant rate by allocating the interest revenue or expense at that rate over its life.

Synonym(s): 
  • EIR method.
top
© 2015-2024 Pecunica LLC.  All rights reserved.
;