What is the Banker's Rule?
Understand the Problem
The question is asking about the Banker's Rule, which could refer to a principle in finance or a method of rounding numbers. This requires a knowledge-based understanding of the rule and its applications.
Answer
Ordinary interest computed by exact time divided by 360.
The final answer is when ordinary interest is computed by exact time divided by 360 (exact time/360).
Answer for screen readers
The final answer is when ordinary interest is computed by exact time divided by 360 (exact time/360).
More Information
Banker's Rule is commonly used in commercial practice and tends to yield maximum interest compared to other methods.
Tips
A common mistake is confusing the denominator as 365 days instead of 360.
Sources
- The web page with info on - Example Source - fac.ksu.edu.sa
- Use the Banker's rule! | Wyzant Ask An Expert - wyzant.com
- Solved Banker's Rule: Used to calculate simple interest when - Chegg - chegg.com
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