Kay Egan, vice-president of operations for Irvine National Bank, has instructed the bank's computer programmer to use a 365-day year to compute interest on depository accounts (payables). Kay also instructed the programmer to use a 360-day year to compute interest on loans (receivables).

Questions:

1. Why are there two methods of computing interest: 360 days vs. 365 days?
2. Is it ethical for Egan to use one method for payables and another method for receivables?
3. What are the advantages and disadvantages to both methods?

As always, use complete sentences to answer the questions. Use proper grammar. Defend your answers with examples and complete explanatio