Pawnbrokers and Second-hand Dealers Regulation 2021
25Equivalent annual interest rate
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25 Equivalent annual interest rate
25 Equivalent annual interest rate
(1) For the purposes of section 28(2)(c) of the Act, the equivalent annual interest rate is the periodic interest rate multiplied by the number of times the interest period occurs in 1 year.
Example.
If the interest period is 1 month, the equivalent annual interest rate is 12 times the periodic interest rate.
(2) In this clause—
interest period means the period of time during which a rate of interest applies.
periodic interest rate means the rate, expressed as a percentage, for each interest period at which interest accrues on the portion of the loan that remains unpaid.