TIME BETWEEN

DATES
Simple Interest
Prepared by:
ENGR. EDUARDO L. CATIGTIG JR.
 We have just emphasized that when we find
the interest whether it be on deposits or on loans,
the time should always be expressed in years.
We will not encounter problems if the time is
expressed in years. However, there are some
cases wherein we must be the ones to determine
the time. Therefore, we must have an agreement
in finding the time to be considered in the
 DIFFERENT TIME FRAME

EXACT TIME or APPROXIMATE TIME

ACTUAL
 Obtained byTIME
counting each Obtained by assuming that
day of every month of the every month has 30 days
term excluding the origin and then counting again
date. each day of every month
Determine by counting excluding the origin date.
each day of each month of Determine by assuming
the term except the origin each month to have 30 days
date. and then counting each day
of each month except the
origin date.
EXACT TIME or APPROXIMATE TIME
ACTUAL
MONTH
January
TIME
No. DAYS
31
MONTH
January
No. DAYS
30
February 28 February 30
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 31 October 30
November 30 November 30
December 31 December 30
TOTAL 365 TOTAL 360
LEAP YEAR 366
EXAMPLE:
Find the
a) Actual time and
b) Approximate time between June 10, 2002 and September 24, 2002

Solution
a. To find the actual time
June 20 (30-10) (exclude the first day, June has 30 days)
July 31
August 31
September 24 (include the last day)
106 days
b. To find the approximate time, assume each month has 30 days
June 20 (30-10) (exclude the first day, June has 30 days)
July 30
August 30
September 24 (include the last day)
104 days
Different Time Factors
Exact 1.
2.
Interest 3.
=I e
Ordinary
4.

Interest
=Io BANKER’S
EXAMPLE
On June 10, 2002 Julie Ann applied for ₱5,000 loan at 8% simple interest. She promised to pay on September 24, 2002.
Compute for the interest on the loan using
a) Actual time, exact interest
b) Approximate time, exact interest
c) Approximate time, ordinary interest
d) Actual time, ordinary interest
SOLUTION
Actual time, exact interest

Ie=5000(.08)= 116.164
Approximate time, exact interest

Ie=5000(.08)= 113.973
Approximate time, ordinary interest

Io=5000(.08)= 115.556
Actual time, ordinary interest

Io=5000(.08)= 117.778