Question

Using the bankers rule, find the simple interest on 18,000 pesos at 17.25% from Feb.4 to Apr 21 of the same leap year.

Answer 1

From the question

By the bunkers rule

`I=\text{PRT}`

P = 18,000

R = 17.25% = 0.1725

For the time

Since the year is a leap year then

February has 29 days

Hence

From Feb.4 to Apr 21 implies

The number of days left in Feb. = 25

Number of days in March = 31

Number of days for April = 21

Therefore, Total number of days = 25 + 31 + 21 = 77

By Bankers rule, total days for the year will be 360

Hence the interest is

`\begin{gathered} I=18000*0.1725*(77)/(360) \\ I=18000*0.1725*0.2139 \\ I=664.16 \end{gathered}`

Therefore, the interest is 664.16