Is AER Paid Monthly?

Is AER Paid Monthly?
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1 Answer

  1. That’s not always same for all the cases. It would depend upon a particular kind of investment and how they choose to pay interest. Although this could be noted that if interest rate is paid annually then there would be no difference in gross interest rate and AER as AER is compounded annually. If the interest raid is paid monthly or quarterly, then AER would definitely be greater than AER by some a few point percentage.

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