Nominal interest rate and effective interest rate converter help |

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Days in year |
The number of days within a year can be set to:
**366 days** This is a leap year (normal year + 1 day extra (29 feb)
**365 days** Normal year (non leap year) Interest rate using a 365-day year is called exact interest.
**364 days** The 364 day year derives from 52 weeks * 7 day weeks = 364 days in a year.
**360 days** When a month has 30 days, a year has 12 months * 30 = 360 days Interest rate using a 360-day year is called ordinary interest.
Example 1: A year has 366 days:Compounding period (N) or payment period (M) is 366. Example 2: A year has 365 days:Compounding period (N) or payment period (M) is 365. Example 3: A year has 364 days:Compounding period (N) or payment period (M) is 364. Example 4: A year has 360 days:Compounding period (N) or payment period (M) is 360. |