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- 2016-4-18
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getting a period rate
When you are trying to calculate a period rate (For example, 120 days), when do you use powers and when do you just multiple by days over 360? I have seen it used both ways in the notes, and its really confusing me. Is there a reason, or is it just an approximation vs accuracy thing.
Example:
rfr = 4
t = 120 days
sometimes I see the calc as 0.04*(120/360) + 1
sometimes i see the calc as 1.04^(120/360) |
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