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Calculating Simple Interest with Exact Time | Financial Mathematics
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How do we calculate simple interest with exact time? We'll go over what exact time means in relation to simple interest, and see examples of how to calculate exact time, in today's financial math lesson! Simple interest can be calculated as exact simple interest or ordinary simple interest, these methods differ in regards to how many days they assume to be in a year. Whichever method we use, we also have to choose between exact time and ordinary time, which determine how we count days between dates. Calculating ordinary simple interest with exact time is called the Banker's rule, which is the most common combination used due to it usually yielding a slightly higher amount of interest.
Thanks to Nasser Alhouti, Robert Rennie, Barbara Sharrock, and Lyndon for their generous support on Patreon!
I hope you find this video helpful, and be sure to ask any questions down in the comments!
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Thanks to Nasser Alhouti, Robert Rennie, Barbara Sharrock, and Lyndon for their generous support on Patreon!
I hope you find this video helpful, and be sure to ask any questions down in the comments!
+WRATH OF MATH+
Follow Wrath of Math on...
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