## E

E ABCDEFGHIJKLMNOPQRSTUVWXYZ# Term Definition effective rate of interest compares a reducible rate to a flat rate of interest $$E=\frac{(1+r)^n-1}{n}$$ where: E = effective flat rate, r = reducible rate as a decimal, n = length of loanWhen comparing a flat rate then we use this formula to approximate the effective interest: $$r=\frac{2nR}{n+1}$$ where: [...]