Simple interest calculator help |

Settings | Remark |

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 found 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 found using a 360-day year is called ordinary interest.
The number of days within a year is important when adjusting the time period especially when the day unit is used. Example 1: How time period will be adjusted, a year has 366 days:Interest rate = 5% per day Time period = 2 months 366 days equals 12 months equals 1 year Thus 2 months equals (2*366)/12 = 61 days Example 2: How time period will be adjusted, a year has 365 days:Interest rate = 5% per day Time period = 2 months 365 days equals 12 months equals 1 year Thus 2 months equals (2*365)/12 = 60.8333 days Example 3: How time period will be adjusted, a year has 364 days:Interest rate = 5% per day Time period = 2 months 364 days equals 12 months equals 1 year Thus 2 months equals (2*364)/12 = 60.6667 days Example 4: How time period will be adjusted, a year has 360 days:Interest rate = 5% per day Time period = 2 months 364 days equals 12 months equals 1 year Thus 2 months equals (2*360)/12 = 60 days |