BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In the exact interest method there are ____ days considered to be in a year.
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12
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360
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365
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52
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Explanation:
Detailed explanation-1: -On the other hand, Exact simple interest is a simple interest that uses exact number of days in a year which is 365 (or 366 for leap year). These two kinds of simple interest are only applicable if the unit of time used is in days.
Detailed explanation-2: -This is the simplest way a lender calculates interest. Because there are 365 days in a normal year, and 365 cannot conveniently be divided by 12 months into a whole number, the lender simply assumes that there are 12 equal, 30-day months (or a 360-day year).
Detailed explanation-3: -The interest year has 360 days.
There is 1 question to complete.