Understand 30/365 Loan Accrual: Methods Compared
Understanding how loan interest is calculated is crucial for both borrowers and lenders. This guide explains three common methods: 30/365, Actual/360, and Actual/365, highlighting their differences and helping you choose the best option for your needs. We'll use clear examples and a step-by-step approach to demystify this often-confusing topic. 30/365 Loan Accrual: A Step-by-Step Explanation The 30/365 method simplifies interest calculation by assuming every month has 30 days and a year has 365 days....