exact interest

exact interest definition - finance
Interest paid by a financial institution that is calculated on a 365-days-per-year basis. This contrasts with ordinary interest, which is calculated on a 360-day basis. When a very large amount of money is drawing interest, the difference between exact interest and ordinary interest can be significant.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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