Simple vs Compound Interest and Day-Count Conventions
This lesson is part of the course
In this lesson
You calculate the same interest claim with actual/365 and 30/360 day counts and with yearly compounding, and measure what the choice of method is worth.
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Lessons in this course
- Lost Profits: But-For Revenue, Actual Revenue and Avoided Costs Locked
- Mitigation: Substitute Earnings and the Net Loss Locked
- Statutory Interest with a Changing Rate Table Locked
- Simple vs Compound Interest and Day-Count Conventions Locked
- Late-Payment Interest on Unpaid Invoices Locked
- Future Losses: Projecting Lost Earnings and Discounting to Present Value Locked
- Case Value: Expected Outcome, Costs and the Break-Even Probability Locked
- Structured Settlement vs Lump Sum: PV, RATE and a Sensitivity Chart Locked