Salosagcol, Leobert Yancy G

BSE-SST II-2
Activity 5.2
Directions: Solve the following interest problems. Show all work.
1. Michael took out a school loan for $5,000. The interest rate on the loan was 4%. Mitch paid off
the loan in just 100 days. How much did he pay altogether using ordinary and exact interest?
Io = 5,000 (0.04) (100) = 555.56 F = P+1 = 5,000 + 55.56 = 5,055.56
360
Io = 5,000 (0.04) (100) = 54.79 F = P+1 = 5,000 + 54.79 = 5,054.79
365
2. To buy a laptop computer, Chris borrowed Php 30,000 for 50 days at an interest rate of 5%. How
much interest will she pay using ordinary and exact interest.

Io = ₱ 30,000 (0.05) (50) = ₱ 208.33 F = P+1 = ₱ 30,000 + Php 208.33 = ₱ 30,208.33

360

Io = ₱ 30,000 (0.05) (50) = ₱ 205.48 F = P+1 = ₱ 30,000 + ₱205.48 = ₱ 30,205.48

365
3. Ms. Wa borrowed $10,000 in a bank at a yearly rate of 3.5% on February 14, 2020. How much
interest will she pay if the due date of the loan is on October 11, 2020. Find the exact and
ordinary interest using actual and approximate time for each interest.
From February 14, 2020, to October 11, 2020, the number of days is as follows:

Actual time Approximate time

February (29-14) 15 February (30-14) 16
March 31 March 30
April 30 April 30
May 31 May 30
June 30 June 30
July 31 July 30
August 31 August 30
September 30 September 30
October 11 October 11
Total = 240 Total = 237

Ordinary Interest with Actual Time

Io = Prt = 10,000 (0.035) (240) = 233.33
360 360
Ordinary Interest with Approximate Time
Io = Prt = 10,000 (0.035) (237) = 230.42
360 360
Exact Interest with Actual Time
Ie = Prt = 10,000 (0.035) (240) = 230.14
365 365
Exact Interest with Approximate Time
Ie = Prt = 10,000 (0.035) (237) = 227.26
365 365