Interest Computation

Banker's Year
A standardized time measurement convention used in financial computations, where each month is assumed to have 30 days and the year 360 days.
Rule of 78s
The Rule of 78s is a method for computing unearned interest used on installment loans with add-on interest. It distributes the interest charges in a way that results in higher interest expenses earlier in the loan term.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.