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Title: Actual and Appropriate time
Description: Actual and appropriate time

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S11MATH: Basic Business Mathematics

Actual and
appropriate
time

S11MATH: Basic Business Mathematics

Definition of Terms
Actual Time – is obtained by counting the exact
number of days in a given month
...

Example 1:
Determine the actual and the approximate time given
the inclusive dates below
a) Jan 4, 2014 to September 12, 2014
b) December 17, 2016 to May 28, 2017

S11MATH: Basic Business Mathematics

List of Formulae:

Ordinary Interest using actual time (Banker's Rule):
actual time
I
O ( act )
Pr
360

Ordinary Interest using approximate time:
approximate time
I
Pr
O ( app )
360

S11MATH: Basic Business Mathematics

List of Formulae:

Exact Interest using actual time:
actual time
I E( act ) Pr
365
Exact Interest using approximate time:
approximate time
I E( app ) Pr
365

S11MATH: Basic Business Mathematics

Example 2:
On February 20, 2015, Jose made a loan in the bank
amounting to ₱1,000,000 at 4
...
He
assure that he will pay on July 14, 2015, how much
interest would he pay?
Example 3:
Lorenzo borrowed ₱50,000 on August 26, 2012 and
paid the loan in full on December 25, 2012 with 11%
interest
Title: Actual and Appropriate time
Description: Actual and appropriate time