Single Payment Loans (Ordinary and Exact)

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What is a single payment loan?

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A single payment loan is a type of loan where the borrower receives a lump sum and agrees to pay back the principal amount plus interest in one payment at a specified future date.

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What is ordinary interest?

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Ordinary interest is calculated on a 360-day year basis, meaning interest is computed using 30 days for each month.

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What is exact interest?

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Exact interest is calculated based on the actual number of days in the loan period, using a 365-day year.

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How do you calculate ordinary interest?

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Ordinary Interest = Principal × Rate × (Days/360)