Calculating Simple Interest with Exact Time | Financial Mathematics

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.
Calculating simple interest: • Calculating Simple Int...
Calculating exact simple interest: • Calculating Exact Simp...
Calculating ordinary simple interest: • Calculating Ordinary S...
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[@shiri9352]

thanks

[@WrathofMath]

Thank you for watching!

[@anmolmehrotra923]

Mom I learned something today!
Sadly it wasn't the spelling of learnt

[@WrathofMath]

Burn burnt, learn learnt, makes sense to me!

[@cheatyhotbeef2636]

I can't believe google's calculator can't calculate time notation, but it can convert units like watts / volts for amp

[@WrathofMath]

Google's calculator is a mysterious beast! And these time calculations are every bit as mysterious!