Why do we use 360 days when calculating interest and why is it called banker days?

Fantastic news! We've Found the answer you've been seeking!

Question:

Why do we use 360 days when calculating interest and why is it called "banker days?"

Related Book For answer-question

Statistics Informed Decisions Using Data

ISBN: 978-0134133539

5th edition

Authors: Michael Sullivan III

See More Books

Posted Date: Jun 17, 2022 11:15 PM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Why do we use a pooled estimate of the population proportion when testing a hypothesis about two proportions? Why do we not use a pooled estimate of the population proportion when constructing a...
Now that you have background on ethics and a set of skills for evaluating ethical issues, the application to real-life dilemmas seems fairly straightforward. However, there is one additional aspect...
Decedent died owning an insurance policy that would pay $2 million to Beneficiary. Six months later, the insurance company paid Beneficiary $2 million plus $50,000 interest. What portion of the...
James Henry served as executive director of Downtown Huntsville, an organization created to revitalize Huntsville, Alabama. Over the course of 14 years, Henry embezzled $236,000. How did Henry do it?...
Suppose that the spot exchange rate for the Japanese yen is 116/$. At the same time, the one-year interest rate in the United States is 4.85% and the one-year interest rate in Japan is 0.10%. Based...
Entropy is a (a) State function (b) Path function (c) Both (a) and (b) (d) Neither (a) nor (b).
Net realizable value method Convad Company is one of the worlds leading corn refiners. It produces two joint productscorn syrup and corn starchusing a common production process. In July 2009, Convad...
You purchased an investment which will pay you $15,000, in real dollars, a year for the next three years. The nominal discount rate is 8% and the inflation rate is 3.6%. What is the present value of...
Crane Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Crane Medical...
The normal capacity of an entity is 350 000 units per annum. The raw material Cost IS R220 per unit and direct labour is R250 per unit. Variable production overheads are R60 per unit and fixed...
What are the primary causes of job shortages in different regions of the world? How do job shortages impact economic stability and growth in different countries? What are the psychological and social...
Comparatively, Macroeconomics is about large-scale economic issues and how the government and the banking system using tools to control what happens. In microeconomics, the discussion shifts to...
Suppose that the US, a large country decides to rapidly reduce its current account deficit by restricting its trade of goods and services with the rest of the world. Assume that this policy brings...
In chronological order, please answer the following questions truthfully using the reference . Define Micro Economics and Macro Economics---answer--- What is opportunity cost?---answer--- What is...
Which technological invention of the 1980s revolutionized DNA data collection by allowing scientists to amplify millions of copies of DNA from a very small amount of template DNA?
(a) Consider an electron whose position is somewhere in an atom of diameter 1 .What is the uncertainty in the electron's momentum? Is this consistent with the binding energy of electrons in atoms?...
Why are stocks usually more risky than bonds?
The negative binomial probability distribution can be used to compute the probability of the random variable X, the number of trials necessary to observe r successes of a binomial experiment. The...
The following data represent exam scores in a statistics class taught using traditional lecture and a class taught using a "flipped" classroom. The "flipped" classroom is one where the content is...
Suppose a playlist you just created has 13 tracks. After listening to the playlist, you decide that you like 5 of the songs. The random feature on your music player will play each of the 13 songs...
The hydrodynamic boundary layer equations consist of one momentum equation and the continuity equation. How does one solve for the pressure?
How does the hydrodynamic boundary layer thickness depend upon the Reynolds number?
If the liquid has a high thermal conductivity, the heat transfer coefficient depends on $\mathrm{Pr}^{1 / 2}$. What is the root cause of the increase dependence on $\mathrm{Pr}$ ?

Why do we use 360 days when calculating interest and why is it called banker days?

Question:

Expert Answer:

Bankers year is a statutory year consists of 360 days in a year with respect to ... View the full answer

Statistics Informed Decisions Using Data

Students also viewed these finance questions