For the purposes of computing interest compounded daily, a year is generally considered to be
A)336 days.
B)360 days.
C) 365 days.
D) 366 days.

Question

Quizplus · Accepted Answer

A year is generally considered to be 360 days for the purposes of computing interest compounded daily. This is because 360 is a convenient number that is divisible by both 12 (the number of months in a year) and 30 (the average number of days in a month).

For the Purposes of Computing Interest Compounded Daily, a Year