DAYS360

Recently, someone at my firm created a DAYS360 formula "=DAYS360(A19,$D$11,FALSE)" and used the dates of Feb 28, 2002 - Feb 28, 2006 to calculate interest. For some reason, for the first year of 2002 it should return 1,440 days but is returning 1,438 days. I changed the "FALSE" to "TRUE" and it works fine. Also, note that for Feb 28, 2004 it correctly returns 720 days - that's a leap year. Does anyone know if this is a known bug in the formula or a way to set it correctly?  Thanks for your input.

Dave

Hi Dave

Per Excel help:

Optional. A logical value that specifies whether to use the U.S. or European method in the calculation.

U.S. (NASD) method. If the starting date is the last day of a month, it becomes equal to the 30th day of the same month. If the ending date is the last day of a month and the starting date is earlier than the 30th day of a month, the ending date becomes equal to the 1st day of the next month; otherwise the ending date becomes equal to the 30th day of the same month

European method. Starting dates and ending dates that occur on the 31st day of a month become equal to the 30th day of the same month

So in your formula with False, 28th Feb is being treated as being 30th Feb (as if it existed anyhow) with the end date unchanged, hence the number of days is two less than with the option set to True (ie 1438 v 1440).

Richard