medu
posted by mariam .
RM 2000 was invested on 15march 2012. If the simple interest rate offered was 10% per annum, find the interest received on 29 August 2012 using
A. Exact time and exact simple interest
B. Exact time and ordinary simple interest
C. Approximate time and exact simple interest
D. Approximate time and ordinary simple interes

.

Exact simple interest means we count the number of days in the year (some say it is 365, leap year or not) to do the calculation of simple interest.
Ordinary simple interest is based on the banker's year of 12 months of 30 days, or 360 days a year. This is equivalent to a slightly higher interest rate.
Exact time means we calculate the loan duration by the number of days between the loan and repayment.
If we borrowed on January 1st 2012 to March 1st 2012, the exact time is 31+29 =60 days.
Approximate time is counting the number of complete months plus a certain number of days, if applicable. The extra days are divided by 30 to get a fraction of months.
Example:
Exact time and exact simple interest:
RM 2000 at 10% pa
March 15 to August 29.
Number of days:
16+30+31+30+31+29=167 days
Period: 167/366 year
Rate: 10%
Interest: RM 2000*(10/100)*167/366= RM 91.26 (to the nearest cent, 0.01RM)
Respond to this Question
Similar Questions

business math
Using the exact interest method (365 days), find the amount of interest on the following loan Principal Rate (%) Time (days) Exact Interest $1,700 12½ % 33 
business math
using the exact interest method 365 days, find the amount of interest on the following loans, principal is $1,700, the rate is 121/2 percent, time days is 33. what is the exact interest 
math
8.Mary invested RM3000 in two accounts, some at 12% per annum and the rest at 8 percent per annum.Her total interest for one year was RM3200.how much was invested at each rate? 
math (SIMPLE INTEREST)
1.find a)simple interest earned b) simple amount for the following investment i)RM20000 for 4 years 6 months at 11% per annum 
math (SIMPLE INTEREST)
1.find a)simple interest earned b) simple amount for the following investment ii)RM15000 for 5 1/4 years 6 at 9 percent per annum 
Math
How do I find the exact interest on a loan for $3000 with a simple interest annual interest rate of 15% that was made on June 11 and was due on August 11. 
math
A certain sum is invested for T year.it amounts to Rs.400 at 10% simple interest per annum.But when invested at 4% simple interest per annum, it amounts to Rs.200.Then time(T) is: 
SIMPLE INTEREST
In how much time would the simple interest on a certain sum be 0.125 times the principle at 10% per annum? 
Business Math icom 1
Find the ordinary interest in a loan of Rs.2600 at 10 % simple interest from January 5 to February 10.? 
simple interest
A total of $12,000 is invested into two simple interest accounts. On one account the annual simple interest rate is 12%, while on the second account the annual interest rate is 18%. How much should be invested at 12% so that the interest …