Gene Moreau dot com

How do the big banks calculate daily interest?

For an interest rate of x% annually, do they just divide that by the number of days in the year(365 in a normal year)?

Or do they divide that by the number of months in the year (12) and then by the number of days in the average month (30)?

The later give a marginally higher daily interest rate, so I would assume they use that one.

The reason I ask is that I’m trying to figure out how much I will owe in interest on my line of credit at the end of the month. It is supposedly calculated daily. I though I would just calculate the daily interest rate, multiply by the balance at the end of the day and they add all those up. I’m always off by a few cents. Rounding?

I know this is nitpicking, but I’d really like to know why I’m off.

Comments please….

Union must be part of auto sector rescue

Talk about the two biggest dinosaurs around. The auto industry and unions in general.

“Clement is due to visit the Washington and Detroit soon for talks on how to handle the auto sector’s woes.”

I can tell you how to handle your woes. Instead of focussing on milking as much out of short term profits as you can, get your head out of your a$$ and make some innovative products that the consumer wants. If you had done this 10 years ago you wouldn’t be having the problems you have. A little pain now will mean a better future for all involved.

(Via Reuters.)

All I can say is this is unreal.

Bailout execs get bonus billions from taxpayers

(Via Aftermath News.)