Why is decimal a preferred type in financial calculations? it's a smaller format decimal is a simpler encoding decimal encodes exact amounts whereas float and double are approximations financial firms have lots of money and wanted their own type
Why is decimal a preferred type in financial calculations? it's a smaller format decimal is a simpler encoding decimal encodes exact amounts whereas float and double are approximations financial firms have lots of money and wanted their own type
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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Transcribed Image Text:### Why is decimal a preferred type in financial calculations?
- ○ it's a smaller format
- ○ decimal is a simpler encoding
- ○ **decimal encodes exact amounts whereas float and double are approximations**
- ○ financial firms have lots of money and wanted their own type
#### Explanation:
In financial calculations, precision is crucial. The use of the decimal type is preferred because it encodes exact amounts, ensuring accuracy. In contrast, float and double are approximate and can lead to rounding errors, which are unacceptable in financial computations.
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