BAH! I must be mentally retarded with math

[Simon F]

I agree with OGL guy - at least that is how it is defined in the UK.

However, here they have been introducing what they call the "Annual Equivalent Rate" (AER), which is meant to be a measure allowing you to directly compare different interest rates since some institutions compute it daily and others monthly.

AER would therefore have to factor in the differences due to compounding daily VS monthly VS yearly.

 

[K.I.L.E.R]

You guys complicate things beyond belief.

You know I helped my friend on this assingment so he doesn't fail. I didn't do it for him.
Anyway, he gave me Postal 2 for helping him to do it in C++ and VB.
If anyone fails this course they have to go to night school to redo an entire year.

I love my gift.

 

[OpenGL guy]

I agree with OGL guy - at least that is how it is defined in the UK.

However, here they have been introducing what they call the "Annual Equivalent Rate" (AER), which is meant to be a measure allowing you to directly compare different interest rates since some institutions compute it daily and others monthly.

AER would therefore have to factor in the differences due to compounding daily VS monthly VS yearly.

In the US, institutions talk about "APR" (annual percentage rate). But APR is more than just the interest wrt to compounding, it also includes fees and such (i.e. for a home loan or something) so it's quite possible for the APR to be higher than your'd expect. Is it the same with AER?