What Is More Effective Tax Vs. Interest Rate Cut?

Answer Tax cuts and interest rate cuts both have some effect when it comes to stimulating the economy. The more effective tool is cutting taxes. Interest rate cuts may have a limited or delayed effect in ... Read More »

Top Q&A For: What Is More Effective Tax Vs. Interest Rate Cut

What is the effective rate of interest?

An effective rate of interest refers to the actual yield when including the effects of compounding, according to Investopedia. Compounding $1,000 at 10 percent interest once a year, for example, yi... Read More »

What is an effective rate of interest known as?

The effective rate of interest is the annual equivalent rate (AER) of interest paid on a loan or earned on an account. The amount of actual interest depends on the frequency it is compounded and al... Read More »

How to Calculate Effective Interest Rate?

When analyzing a loan or an investment, it can be difficult to get a clear picture of the loan's true cost or the investment's true yield. There are several different terms used to describe the int... Read More »

How to Figure the Effective Rate of Interest?

When a lender or bank quotes you an APR, or annual percentage rate, on a loan or investment, this number does not account for compounding interest. Calculating the effective interest rate can not o... Read More »