Group6 Group

Activity
TEACHER FRANZ JAN ANDRES
 Approximate and Actual
Time
if problems do not state the terming
days, months or years, then give the
loan date and the maturity date. We
can use either actual time or
approximate time.
 Approximate Time Actual Time
Approximate time, like ordinary interest, Actual Time, the time of a loan or
assumes that each of the 12 months in a year investment that is obtained by counting
has 30 days (360 days in a year). On the other the actual number of days between the
hand, actual timeouts exact number of days;
origin date and the maturity date based on
hence, a year is taken as composed of 365 days.
a Julian calendar.
In as much as each of the 12 months does not
equally have 30 days, actual time is longer than
approximate time.
 Find the Approximate Time between:
5th of April 2019 to 4th of August 2019
Month Days

January 30

February 30
START
Example of March 30 April 5-30 25
May 30
Approximate April 30
June 30
Time July
May 30
30
June 30 August 4 LAST
July 30 total 119 days
August 30

September 30

October 30

November 30

December 30
 FINDING THE ACTUAL TIME FROM
JULY 4, 2023 TO DECEMBER 25, 2023

MONTH ACTUAL DAYS

Example of July 27

August 31
Actual September 30

Time October 31

November 30

December 25
A C T U A L
T I M E 147
 Ordinary Interest Exact Interest
is a simple interest that uses On the other hand, Exact simple
360 days as the equivalent interest is a simple interest that
uses exact number of days in a
number of days in a year and is
year which is 365 (or 366 for leap
computed in 360 days in a year
year) and is computed in 365
as the time factor
days in a year as the time factor
denominater.
denominator.
 ON MAY 30, 2012 A BUSINESS MAN LOANS $15,000 IN
THE BANK FOR THE EXPANSION OF HIS RESTAURANT. IT
WAS AGREED THAT HE WILL PAY THE AMOUNT WITH 6%
RATE OF INTEREST ON AUGUST 10, 2012. WHAT IS THE
ORDINARY SIMPLE INTEREST TO BE PAID?
Principal amount is $15,000.
Example of Rate of interest is 6%.
Counting the number of days from May 30 to August 10;
Ordinary Note: Since May 30 is the beginning date, it is not included in
counting.
Interest May 30 1
June 1-30 30
July 1-31 31
August 1-10 10 :Total 72 days
Converting days into years: 72 days x (1year360days) =
15years Using the formula for solving the simple interest;
Interest = Principal x Rate x Time
Interest = $15,000 x 6% x 15
Interest = $15,000 x 0.06 x 15
Interest = $180
Therefore, the businessman will pay $180 interest.
 YOU HAVE A NOTE IN THE AMOUNT OF
$15,000 AT 7% INTEREST FROM APRIL 3 TO
JULY 8. LENGTH OF LOAN ( EXACT TIME)
APRIL TO JULY 8 = 96 DAYS
Example of
Exact The Exact interest assumes: 1 year
= 365 days.
Interest P= $15,000
R= 7% or 0.07
T= 96 days
I= Prt
I= ($15,000)(0.07)(96/365)
I=$276.16
 Banker's Method
The Banker's Method bases its calculation of a
loan's interest on actual time and ordinary
interest which results in somewhat larger
interest amounts, Another type of simple
interest that resembles ordinary simple
interest is the banker's rule. Although it is
based on a year of one year or 360 days, when
computing interest, you use the actual number
of days in the term.
 USING THE BANKERS METHOD LET US
FIND THE SIMPLE INTEREST OF A
₱1,800 LOAN AT 6% FOR 120 DAYS.

Example of Given : Solution :

Banker's P = ₱1,800 I = Prt
r = 6% (0.06) I = 1800 • 0.06 • 120/360
Method t = 120/360 I = ₱36
I=?
 Group members & Contributions

ALLIA VINARAO ARNIE TEOPE ARNISHA REAL

Defined Banker's Method Differentiated the Approximate Differentiated the Ordinary and
and Actual Time Exact Interest

CHELISH ROSACENA(LEADER) KRIZZY SOTES PRECIOUS SAN AGUSTIN

Gave the example of Approximate Gave the example of Exact
Gave the example of Banker's
Time, Compiled the members answers, Interest
Method
made the powerpoint

SAMANTHA TEYLAN SOFIA VILLANUEVA NOTE!

Gave the example of Actual Time Gave the example of Ordinary
Everyone was very cooperative and
Interest
very understanding