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