Homework Help: Banking Question

1. Jul 22, 2011

GreenPrint

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. Jul 22, 2011

GreenPrint

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.

3. Jul 29, 2011

GreenPrint

does anyone know?

4. Jul 29, 2011

HallsofIvy

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