The pause may be used. 1  at the end of a short sentence. e.g: I am hungryâ. 2  at the end of a phrase. e.g: In spite of his being poorâ ... 3  at the end of a clause. e.g: Unless you do your homeworkâ ...
The effective annual interest rate is a way of restating the annual interest rate so that it takes into account the effects of compounding.
BREAKING DOWN 'Effective Annual Interest Rate'. Consider a stated annual rate of 10%. Compounded yearly, this rate will turn $1000 into $1100. However, if compounding occurs monthly, $1000 would grow to $1104.70 by the end of the year, rendering an effective annual interest rate of 10.47%. Basically the effective annual rate is the annual rate of interest that accounts for the effect of compounding.