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Glossary   >   E   >   "Effective rate" Definition            Effective rate A measure of the time value of money that fully reflects the effects of compounding. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Effective rate - A measure of the time value of money that fully reflects the effects of compounding.