TAE = (1.005286)^12 – 1 = 0.0653 → 6.53% (higher than nominal 6% due to fees) 7. Comparison: TAE vs. APR (USA) vs. IRR | Metric | Scope | Includes fees? | Compounding | |--------|-------|----------------|--------------| | TAE (EU) | Consumer credit, mortgages | Yes, mandatory recurring fees | Effective annual | | APR (USA) | Reg Z (Truth in Lending) | Some fees, but not all | Nominal annual | | IRR | Investment projects | Any cash flows | Periodic |
[ \textPrincipal - \textUpfront fees = \sum_p=1^N \frac\textMonthly payment(1+r)^p ] simulador tae
[ i_new = i_old - \frac\textNPV(i_old)\textNPV'(i_old) ] TAE = (1