Asked by Clash Clans on May 11, 2024
Verified
Compute (a) the ordinary interest, (b) the exact interest and (c) their difference. Round answers to the nearest cent.
Ordinary Interest
Interest calculation based on a 360-day year, often used in banking and finance, as opposed to real interest which is based on a 365-day year.
Exact Interest
Interest calculated based on a 365-day year or actual number of days in a loan term, providing a precise calculation of interest charges.
- Differentiate between ordinary (360-day year) and exact interest (365-day year) calculations.
- Utilize mathematical logic to figure out both regular and precise interest rates.
- Cultivate an enhanced understanding of rounding numbers to the nearest cent for financial computation accuracy.
Verified Answer
SA
Learning Objectives
- Differentiate between ordinary (360-day year) and exact interest (365-day year) calculations.
- Utilize mathematical logic to figure out both regular and precise interest rates.
- Cultivate an enhanced understanding of rounding numbers to the nearest cent for financial computation accuracy.
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