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A method of calculating interest using 365-day year is the(?) method. (Quantitative literacy)
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A method of calculating interest using 365-day year is the(?) method.
(Quantitative literacy)
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Mathematics
6 months
2021-07-16T08:49:13+00:00
2021-07-16T08:49:13+00:00 1 Answers
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Step-by-step explanation:
To calculate the interest payment under the 365/360 method, banks multiply the stated interest rate by 365, then divide by 360. However, due to the numerator and denominator not matching, the 365/360 method has been held to increase the effective interest rate by 0.01389 in a non-leap year.