Transcripts for the above video clip:

Days 360

The days 360 function is useful in financial transactions where a year is assumed to have only 360 days. To use it, activate the function wizard and in the date and time category you’ll see something called “Days 360”. Click ok. It asks where is the start date – you highlight 1 Jan 2009 , end date, 1 Jan 2010. Method can be omitted but basically if you put in a “false” you assume its  US based NASD or else you can put in European methodology by putting in “true”. Click ok. You’ll see it gives us 360 days so where the actual  days are 365 from 1/1 2009 to 1/1 2010 – days 360 will give you 360. You then copy this down and you’ll see between 15 June and 5 July, actual days are 20 – days 360 will give you 20. If you go from the 1 Jan 09 to 1 June 09, actual days 151 but this will give us 150 days. It is quite useful because we can then say that this is assuming 30 days per month. So we can say that that number (150) divided by 30 will give us the number of months between these two dates – ie  Jan to June will be 5 months