FIFO stands for “First in First out”. FIFO is an asset & stock management and valuation method. This method is widely accepted by businesses.

Pharmacy stores mainly use this method to manage stock and to check which one needs to be ordered on urgent basis.

Effective Annual Interest Rate

Effective Interest Rate

The total amount of interest earned or paid in a year on any financial products, loans etc. is called as the effective annual interest rate. The effective annual interest rate is also known as an effective interest rate.

So, how to calculate effective interest rate? Here is the formula: r = (1+i/n) n -1

r= effective interest rate   n = no. of periods   i= annual interest rate

Effective annual interest rate calculates while considering compound rates instead of static interest rates.