Option Interest

Option Interest Calculated on a 360 – day years, as against exact interest, which is one 365 days. On large sums of money there can be a considerable difference. The ratio of ordinary interest to exact interest is 1.0139. On a sum of Rs. 100, 00,000 the difference will amount to Rs 1, 38,888. And this is only 1% interest; 15% or 20% interest will produce a much higher figure

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