Annualised agreed rate


AAR – the annualized interest rate is the rate independent of the proportional or conformal return.
When calculating interest on a proportional or conformal mode there are differences (why you can find here). AAR is equal to the rate when billing is conformal and with proportional representation, if the annual calculation of interest. With proportional accounts, where the interest will be calculated several times a year, the AAR is greater than the interest rate because the credit is proportional to the charging higher prices.
For example, a loan proportional to clearing and 10% interest rate is 10.47% AAR. This means that we will pay for this loan as much interest as if they had hired a loan with conformal Mon charging 10.47% interest shots.



The annual proportional rateThe number of accounts in the year (for monthly 12)AAR