Exact and

Module 4

Ordinary
Interests
Definition:
Actual time – exact or
actual number of days in
any given month
Approximate time – all
months within a year
contain 30 days
The Gregorian Calendar consists of
the following 12 months:
MONTH NUMBER OF DAYS
January 31
February 28 or 29
March 31
April 30
May 31
June 30
July 31
August 31
September 30
October 31
November 30
December 31
Example1: Find the actual and approximate time
from February 14 to September 20, 2020.
EXACT DAYS MONTH APPROXIMATE
DAYS Note: Since 2020 is
29 – 14 = 15 February 30 – 14 = 16 a leap year, hence
31 March 30 February has 29
days.
30 April 30
31 May 30 Leap year if year is
30 June 30 divisible by 4.
31 July 30
31 August 30
20 September 20
219 Total 216
Example2: Find the actual and approximate time
from November 10, 2020 to March 15, 2021.
EXACT DAYS MONTH APPROXIMAT
Note: Since 2021 is
E DAYS NOT a leap year,
30 – 10 = 20 November 30 – 10 = 20 hence February has
28 days.
31 December 30
31 January 30
28 February 30
15 March 15
125 Total 125
Example3: Find the actual and approximate time
from June 25, 2020 to August 16, 2021.
EXACT DAYS MONTH APPROXIMAT
Note: From June 25,
E DAYS 2020 to June 25,
365 June 25, 360 2021 is equivalent to
2020 to June 1 year.
25, 2021
30 – 25 = 5 June 5
31 July 30
16 August 16
417 Total 411
Definition:
 Interest Between Dates
When interest is to be computed from a certain date to another date inclusively,
there are 4 methods of computations:
 1. Ordinary Interest Using ExactTime (Ioe) (Banker’s Rule)

 2. Ordinary Interest Using Approximate Time (Ioa)

 3. Exact Interest Using Exact Time (Iee)

 4. Exact Interest Using Approximate Time (Iea)

Ordinary Interest time Exact Interest time
to = # of days te = # of days
360 365
 Examples:
1. Find the interest using the four methods on Php50,000 at 3 ½%
from February 14 to September 20, 2020.
Solution:
Exact days = 219 days Approximate days = 216 days
a. Ioe = PRT = 50,000(.035)(219/360) = Php1,064.58

b. Ioa = PRT = 50,000(.035)(216/360) = Php1,050

c. Iee = PRT = 50,000(.035)(219/365) = Php1,050

d. Iea = PRT = 50,000(.035)(216/365) = Php1,035.62

 Examples:
2. Find the interest and amount on Php2M at 5 ¼%
from June 25, 2020 to August 16, 2021 using the
Banker’s rule.
Solution: Exact days = 417 days
Ioe = PRT = 2,000,000(.0525)(417/360) = Php121,625
Final Amount = P + I = 2,000,000 + 121, 625
= Php2,121,625
 References:
https://www.youtube.com/watch?v=C4B27AiaWHc
https://www.youtube.com/watch?v=FmfA7v50Fmg
John Eric Mamuyac , Ordinary and Exact Interest / Actual and Approximate Time
#MATHuklasanWithSirRam #Actual #MathintheModernWorld
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