Examlex
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Effective Return
The actual yield or rate of return achieved by an investment, accounting for compounding interest or reinvestments, as opposed to the nominal rate.
Compounded Daily
Refers to the process where interest earned is added to the principal daily, allowing the investment to grow at an accelerated rate due to the effects of compounding.
EAR
Effective Annual Rate, the interest rate on an investment or loan that considers compounding within the year.
Compounded Quarterly
A method of calculating interest where the interest earned over a quarter is added to the principal sum, and the next quarter's interest is calculated over the new principal.
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