Effective Interest Rate

Views Updated: Dec 15, 2025

Key Facts

Abbreviation
EIR
Pronunciation
/ˈifɛktɪv ˈɪntəˌrɛst reɪt/
Category
Business
Related Field
Accounting

Examples in Context

  1. The lessor shall calculate the financing income at the current period by adopting the effective interest rate method.
  2. Research on Calculation Method of Unrealized Financing Profits by the Lessor of Finance Leases Under Effective Interest Rate(EIR) Method
  3. The accounting of effective interest rate method is difficult in our current system of accounting standards.
  4. Tighter monetary policy remains a possibility, but with the current bout of inflation largely a supply-side phenomenon, it is not clear how effective interest rate rises would be.
  5. Understand the terminology of long-term debt including par value, stated versus effective interest rate, discounts, premiums, and mortgages.

Other meanings of EIR