A simplified variation where the year and the loan period are both measured as 360 days, commonly used in banking and financial calculations for ease of computations.
Actual/365 is a day count convention commonly used in finance that calculates interest and periods by dividing by 365 days, emphasizing greater accuracy over a full year.
The Actual/Actual (A/A) method is a day count convention in finance and accounting that considers the actual number of days in the month and year for interest calculations.
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