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Banking Question

  1. Jul 22, 2011 #1
    Do banks round balances?

    For example with interest and everything lets say my current balance is suppose to be 5367.872
    sense you can't have a part of a penny do banks round that down to?
    5367.87
    or do banks round that up to?
    5367.88

    what if it was
    5367.875
    would that get rounded up or down?

    or do banks actually count my current balance out to three significant figures or four or nothing of the sort?

    thanks
     
  2. jcsd
  3. Jul 22, 2011 #2
    I know it really doesn't matter but I don't want to hand in my assignment and have a grader argue with me sense I don't know how banks handle this issue and my grader might so if someone can tell me the standard that would be great

    also note that i live in the U.S. the standards that banks follow outside of the U.S. on this issue is irrelevant because I will be handing this assignment in in the U.S.
     
  4. Jul 29, 2011 #3
    does anyone know?
     
  5. Jul 29, 2011 #4

    HallsofIvy

    User Avatar
    Staff Emeritus
    Science Advisor

    Yes, a bank would round both 5367.872 and 5367.875 down to 5367.87.
     
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