Professional Documents
Culture Documents
b.
c.
d.
e.
k.
M=P+I
M = $1,825 + $219
M = $2,044
Finding Ordinary and Exact Interest
l. Ordinary Interest
i. 360 days (12 months of 30 days each)
ii. Example: Loan of $4,000 at 9% for 60 days
I=PxRxT
I = $4,000 x 0.09 x 60/360
I = $60
m. Exact Interest
i. 365 days (366 days in a leap year)
ii. Example: Loan of $4,000 at 9% for 60 days
I=PxRxT
I = $4,000 x 0.09 x 60/365
I = $59.18
30 Days
April
June
September
November
31 Days
January
March
May
July
August
October
December
c.
d.
e.
f.
$500.00
(5,000 x 0.05)
(5,250 x 0.05)
(5,512.50 x 0.05)
(5,788.13 x 0.05)