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What Is The Ordinary Interest Method?

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"Ordinary Interest" uses 360 as the number of days in a year when computing simple interest.  (30 days per month X 12 months = 360 days)

Example: You borrow $100 from Jan 25 to Mar 11 at 7% interest

7 days in Jan + 30 days in Feb + 11 days in Mar = 48 days.

Interest = Principal x Rate x Time
Interest =    100      x  .07  x  48 / 360
Interest = $0.93

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