When creating a distribution plan, one of the required entries for some Hurdle Types is "day count convention." A day count convention determines how interest accrues over time for an investment.

  • Actual/Actual - calculates the daily interest using the actual number of days in the year and then multiplies that by the actual number of days in each time period.

    • This will result in payments that vary from month-to-month and also factor in the extra day of a leap year.

  • Actual/365 - calculates the daily interest using a 365-day year and then multiplies that by the actual number of days in each time period.

    • This will result in payments that vary from month-to-month, but does not factor in a leap year.

  • Actual/360 - calculates the daily interest using a 360-day year and then multiplies that by the actual number of days in each time period.

    • This will result in payments that vary from month-to-month, but does not factor in a leap year.

  • 30/360 - calculates the daily interest using a 360-day year and then multiplies by the days elapsed in the time period, but treating every month as a standardized 30-day month.

    • As long as distributions are entered on the same day of the month, this will result in payments that are equal month-to-month.

  • 30E/360 - calculates the daily interest using a 360-day year and then multiplies by the days elapsed in the time period, but treating every month as a standardized 30-day month, with the exception that February is not treated specially.

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