What is the difference between ordinary time and exact time relative to computing a loan?
There are different schedules for interest accrual, such as simple and precomputed. Simple is the more commonly used today. There are ways to accrue interest based on a calendar of thirty days a month and three hundred sixty days a year, actual days and three hundred sixty-five days a year and thirty days and three hundred sixty-five a year. For APR calculations, Regulation Z recognizes both the actuarial method and the United States Rule Method, so it depends on what context you are in as well.
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There are different schedules for interest accrual, such as simple and precomputed. Simple is the more commonly used today. There are ways to accrue interest based on a calendar of thirty days a month and three hundred sixty days a year, actual days and three hundred sixty-five days a year and thirty days and three hundred sixty-five a year. For APR calculations, Regulation Z recognizes both the actuarial method and the United States Rule Method, so it depends on what context you are in as well.
