TAE
/tae/from spelling rules
In Spanish, TAE is the acronym for the annual percentage rate used to calculate the total cost of a loan.
TAE is used in financial contexts to express the true annual cost of a loan or credit product, as it accounts for all costs involved.
What does it mean word for word?
The acronym TAE stands for Tasa Anual Equivalente, which translates to Equivalent Annual Rate.
Which one should you use?
While TAE represents the total cost of a loan including all fees and commissions, TIN refers only to the nominal interest rate without those additional costs.
How do you pronounce it?
/tae/
Did you know?
- The word tasa in TAE shares an ancestor with the English word 'tax', both deriving from the Latin 'taxare'.
- While TAE is the standard in Spain, other Spanish-speaking countries may use TEA for Tasa Efectiva Anual.
- In Spain, banks are legally required to display the TAE prominently in all advertising to ensure consumers can compare different financial products accurately.
Examples in context
- El TAE de este préstamo es muy alto.The APR of this loan is very high.
- ¿Cuál es el TAE de la tarjeta?What is the APR of the card?
- Debes comparar el TAE de varios bancos.You should compare the APR of several banks.
Example conversation
Javier and María are discussing a credit card offer.
- Javier¿Conoces el TAE de esta tarjeta?Do you know the APR of this card?
- MaríaNo lo sé, déjame revisar el contrato.I don't know, let me check the contract.
- JavierEs importante fijarse en el TAE.It is important to look at the APR.
- MaríaTienes razón, Javier.You are right, Javier.
Sources
- IPA marked “from spelling rules” is derived from standard Spanish spelling, where Wiktionary gives none.
