General Mathematics - Ordinary and Exact Simple Interests

Solution and answer for this problem:

1)A man borrows P6,400 from a loan association. In repaying this debt, he has to pay P400 at the end of every three months on the principal, and a simple interest of 16% on the principal outstanding at that time. Determine the total amount he has paid after paying all his debt.

these are the given formulas

1) Ordinary Interest (Banker's Rule) - calculated on the basis of a 360-day year or a 30-day month. 10 = Number of Days of a Loan 360 = Pr Number of Days 360 2) Exact Interest - calculated on the basis of a 365-day year for an ordinary year and 366 days for a leap year. (NOTE: Leap years are those which are exactly divisible by 4. For century years, it has to be divisible by 400.) IF = Number of Days of a Loan 365 = Pr ( Number of Days ) for Ordinary Year 365 IF = Number of Days of a Loan _ pr 366 (Number of Days ) for Leap Year 366