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Actual Number of Days: Approximate Number of Days

This document contains a midterm discussion problem from a finance class at Jose Rizal University. It asks students to calculate the ordinary and exact interest on two scenarios: (1) PHP 15,000 from October 3, 2021 to March 30, 2022 at 12.5% interest using actual and approximate number of days, (2) PHP 35,000 for 360 days at 20 1/4% interest. The student provides the calculations and solutions, showing the ordinary interest is PHP 927.08 and PHP 7,087.50 respectively, while the exact interest is PHP 914.38, PHP 909.25, and PHP 6,990.41.

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56 views2 pages

Actual Number of Days: Approximate Number of Days

This document contains a midterm discussion problem from a finance class at Jose Rizal University. It asks students to calculate the ordinary and exact interest on two scenarios: (1) PHP 15,000 from October 3, 2021 to March 30, 2022 at 12.5% interest using actual and approximate number of days, (2) PHP 35,000 for 360 days at 20 1/4% interest. The student provides the calculations and solutions, showing the ordinary interest is PHP 927.08 and PHP 7,087.50 respectively, while the exact interest is PHP 914.38, PHP 909.25, and PHP 6,990.41.

Uploaded by

Asdfghjkl Lkjhgfdsa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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JOSE RIZAL UNIVERSITY

PHI C201
MIDTERM PERIOD

MIDTERM DISCUSSION #2 (GROUP DISCUSSION)

Solve the following: Show your complete solution.

1. Find the ordinary and exact interest of the amount Php15,000 using the (a)approximate
and (b) actual number of days from October 3, 2021 to March 30, 2022 at 12.5% simple
interest.

Actual Number of Days: Approximate Number of Days:


October (2021) 28 October (2021) 27
November 30 November 30
December 31 December 30
January (2022) 31 January (2022) 30
February 28 February 30
March 30 March 30
Total 178 Total 177

Ordinary interest at actual number Ordinary interest at approximate number


of days of days
Principal = 15,000 Principal = 15,000
Rate = 12.5% or 0.125 Rate = 12.5% or 0.125
Time = 178 days Time = 177 days
OI = PR (actual time/360) OI= PR (approximate time/360)
OI = (15000*0.125) (178/360) OI = (15000* 0.125) (177/360)
OI = ₱927.08 OI = ₱921.88
Exact interest at actual number Exact interest at approximate number
of days of days
Principal = 15,000 Principal = 15,000
Rate = 12.5% or 0.125 Rate = 12.5% or 0.125
Time = 178 days Time = 177 days
EI = PR (actual time/365) EI = PR (approximate time/365)
EI = (15000* 0.125) (178/365) EI = (15000* 0.125) (177/365)
EI = ₱914.38 EI = ₱909.25
2. Find the ordinary and exact interest at 20 ¼% simple interest on Php35,000 for 360 days

Solution:
Values for Ordinary Interest:
P = ₱35,000
R = 20.25%
T = 360

Using formula of Ordinary Interest:


I = Pr(actual/360)
I = (35000) (20.25%) (360/360)
I = ₱7,087.50

Ordinary Interest: ₱7,087.50

Values for Exact Interest:


P = ₱35,000
R = 20.25%
T = 360

Using formula of Exact Interest:


I = Pr(actual/365)
I = (35000) (20.25%) (360/365)
I = ₱6,990.41

Exact Interest: ₱6,990.41

ORDINARY INTEREST EXACT INTEREST

Principal = 35,000 Principal = 35,000


Rate = 20 ¼% or 20.25% Rate = 20 ¼% or 20.25%
Time = 360 days Time = 360 days
OI = PR (actual time/360) EI = PR (actual/365)
OI = (35000* 0.2025) (360/360) EI = 35,000*.2025 (360/365)
OI = ₱7,087.50 EI = ₱6,990.41

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