When calculating interest on loans with terms of days, there are two methods.

Ordinary Interest uses the 365 day calendar.

Exact Interest add one extra day 366 to account for leap year.

Question

When calculating interest on loans with terms of days, there are two methods.
​
Ordinary Interest uses the 365 day calendar.
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Exact Interest add one extra day 366 to account for leap year.​

Quizplus · Accepted Answer

Ordinary Interest uses a 360-day year to calculate interest, while Exact Interest uses the actual number of days in a year (365 or 366 in a leap year).

When Calculating Interest on Loans with Terms of Days, There