Question

How do Federal Reserve banks and the federal government typically calculate simple interest?

Answer 1

Interest (I) = Principal (P) X Rate (R) X Time (T)

Hope this helps you:)

5INGH

Explanation:

Answer 2

Interest (I) = Principal (P) X Rate (R) X Time (T)

They tend to use 'Exact Interest' in which Interest calculated using a 365-day year. Time that counts exact number of days in the month that the borrower has the loan

Hope this helps :)