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Days per Year |
  
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Days per Year |
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This setting controls how an annual rate of interest is converted into a daily rate of interests, after all, interest is always calculated on a daily basis. If a rate is defined as '10% per annum' what is the daily rate in a normal year that has 365 days, or in a leap year with 366 days?
Calendar Year
The actual number of days in a calendar year (January to December) will be used to convert the annual interest rate to a daily rate. The calculation will be divided into parts so that the correct number of days is always used.
For example, when calculating interest from July 1 1999 to September 1 2002, the calculation will split at (a) Dec 30 1999 (before changes to 366 day leap year) and (b) Dec 30 2000 (before changes to 365 day normal year).
365.25 Days per Year
The daily interest rate will be calculated by dividing the annual interest rate by 365.25, which is the average number of days per year after allowing for contemporary leap years.
366 Days per Year
The daily interest rate will be calculated by dividing the annual interest rate by 366, which is the number of days per leap year.
365 Days per Year
The daily interest rate will be calculated by dividing the annual interest rate by 365, which is the number of days per non-leap year.
360 Days per Year
The daily interest rate will be calculated by dividing the annual interest rate by 360, which is the based on an average of 30 days per month.