Dismantling makes it interesting!

"But why do we take the average and not the end cash balance to calculate interest?"

One of those questions popped up in the Corporate Finance class, which make me realise that I have become so one dimensional. When I studied Cash Flow Analysis in my masters, it was more a matter of study than its real-life applications. Even the real life applications were 'studied' and not 'experienced'. The 'how' mattered more than the 'why'. 

So, whenever I heard questions like these in the MBA class or during a discussion with my mates, I always wondered why I didn't bother about this. Different angels, different opinions and views, different ways of thinking make everything complicated and fussy, but all the more interesting!!!