Joshua M.

Moreno ME12S3

1) Using Banker’s Rule, find the interest and the amount due if P6500 was borrowed on
October 16, 2021 to be repaid on April 5, 2022 at 18% simple interest.

Months Year No. of Days

October 2021 15
November 2021 30
December 2021 31
January 2022 31
February 2022 28
March 2022 31
April 2022 5
Total= 171 days

Formula:
I =Prt
F=P+ I
Given:
P=P 6500
r =18 %∨0.18
171
t=
360
Solution:
I =Prt

¿(6500)( 0.18) ( 171

360 )
I =P 555.75
F=P+ I
¿ P 6500.00+ P555.7 5
F=P 7055.75
 2) Find the compound interest and the compound amount due at the end of 20 years and 7
months if P20,000 is invested at 9% compounded monthly.
Formula:
n
F=P ( 1+i )
I =F−P
Given:
P=P 20,000
j=9 %∨0.09
7
t=20 yrs.
12
m=12
Solution:

F=P ( 1+ j )n
n=mt

(
¿ ( 12 ) 20
7
12 )
n=247
j
i=
m
0.09
i=
12

( )
247
0.09
F=20,000 1+
12
F=P 126,636.39
I =F−P
¿ P 126,636.39−P 20,000
I =P 106,636.39

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