Which deannualised Interest method: 1+(rx(Days/365) vs 1+r^(Days/365)

A

ajenkins

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The various readings depending on the topic use either :
1+(r(Days/365))
and
1+r^(Days/365)
to deannualise Interest Rates (or annualise or compound over multiple years depending on the question).
Why not just learn one method an use it everywhere?
I realise that sometimes you use 360 day year, but aside from that what am I missing?
Many thanks
 
Great article Lammy. Many thanks.
It is sort of incredible that none of the readings have addressed the nominal verses compound consideration - they just give formulas. Aside from LIBOR is there any specific application of simple in the reading material (I thought remembered seeing both ways used in currency, but I cannot find the examples now)
P.S.
I am with you on the algebra, if you have any websites or link you think we good please let me know.
 
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