EXACT TIME AND APPROXIMATE TIME
3,776
To determine the exact time,
date of payment: May 6, 2015 126 + 365 = 491
date of the loan: Nov. 12, 2014 316
175 days
The Ordinal of Each Day of the Year
If two transaction dates are given, the following simple interests can be computed:
1. ordinary simple interest for exact time
2. ordinary simple interest for approximate time
3. exact simple interest for exact time
4. exact simple interest for approximate time
EXAMPLE 1
Determine the approximate and the exact time between Nov. 12, 2014 and May 6, 2015.
APPROXIMATE TIME
year month day
date of payment May 6, 2015 2015 5 6
date of loan Nov. 12, 2014 2014 11 12
5 24
thus,
approximate time = 5(30)days + 24days
= 150days + 24days
= 174days
EXACT TIME
2014 Nov 18 (30 - 12 = 18)
Dec 31
2015 Jan 31
Feb 28
Mar 31
Apr 30
May 6
175 days