ordinary interest calculated on a 360-day timeframe as opposed to a 365-day period. None of these are ordinary interest method.
Simple (regular) interest, accumulated interest, and compound interest are the three different kinds of interest.
The calculation of ordinary interest uses the premise that there are thirty days in each month of the year. This results in a situation where the interest rate is applied based on 360 days.
While some banks don't employ the strategy for all loans, a sizable portion of institutions use ordinary simple interest in each of the survey's loan categories.
Most interest is often subject to federal taxation at the same rate as your taxable income, including: Deposit account interest, such as that on checking and savings accounts.
$3500 x 24.31 x 100/360 = $23,934.72
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