>>>>Cost=(100*2*10)/(100*365)
>>>>
>>>So, is my understanding correct that we always use 365 and not the adjusted number?
>>>
>>>Thanks.
>>
>>I'm not sure, but I believe most banks use 365 day per year. When I went to school the banks used 30 days per month and 360 days per year, but that was before calculators and standalone computers were invented. :-)
>
>I think I've read somewhere that once upon a time even 300 was used as the base, to simplify the calculation, which is, IMO, another euphemism for dirty trick.

I remember that you could earn some extra interest by putting your money in the bank on February 28th, and withdrawing them the day after. Unles it was a leap year, you wold get the interest of three days instead of only one.