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Unformatted text preview: earning the bank extra money, and basically ripping off customers. For example, Ms. Amy gave us the following problem to figure. The interest rate is 12% on $2000.00 for 120 days. This based on a 360 day year would earn the bank $80.00. The interest rate is 12% on $2000.00 for 120 days. This based on a 365 day year would earn the bank $78.90. By using the 360 day year, the bank has made an extra $1.10 per $2000.00 loaned. This also allows the bank to pay $1.10 less in interest per $2000.00 that gets deposited into the bank. To me, this is considered shady accounting practices. Yes, any company, especially banks wants to save money, but they should not do it at the expense of its customers. Wendy Eller...
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- Spring '09