Ordinary interest

Ordinary interest

Interest based on a 360-day year instead of a 365-day year, resulting in what can be a significant difference.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Ordinary Interest

Interest that is calculated and therefore repaid on the basis of a 360-day year as opposed to a full 365-day year. While this is only a small difference in calculation, the difference in amount can be large, especially with large debt transactions. See also: Exact interest.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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