Finding the ordinary and the exact interest does not seem to be a. lot of difference for the same loam.

Finding the ordinary  and the exact interest does not seem to  be  a. lot of difference for the same loam. For example, to find the ordinary and exact  interest rate on a loan of $1000 with rate of 5 % and the date of the loan is starts March 15 and is due May 15th.


Ordinary

loan $1000(0.05)61/360  I= 3050/360 = $ 8.47


The  same figures apply to exact, interest except the number of days is equal to 365


Exact

I $1000(0.05)61/365

I= 3050/360 = $8.35

Please tell me if I am on the right track.

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