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Question 1189776: Find the interest on the following amounts using 6%-6 day method:
1. P6,500 at 6% for 54 days
2. P1,500 at 6% for 120 days
Answer by CPhill(1959)   (Show Source):
You can put this solution on YOUR website! The 6%-60 day method is a shortcut for calculating simple interest when the interest rate is 6% per year. Here's how it works:
**The 6%-60 day Rule**
* **60 days:** At 6% interest, money earns 1% interest in 60 days.
* **6 days:** To find the interest for 6 days, simply move the decimal point in the principal amount three places to the left.
**Calculations**
**1. P6,500 at 6% for 54 days**
* **Interest for 6 days:** Move the decimal point three places to the left in P6,500, which gives you P6.50.
* **Number of 6-day periods in 54 days:** 54 days / 6 days = 9
* **Total interest:** P6.50 * 9 = **P58.50**
**2. P1,500 at 6% for 120 days**
* **Interest for 6 days:** Move the decimal point three places to the left in P1,500, which gives you P1.50.
* **Number of 6-day periods in 120 days:** 120 days / 6 days = 20
* **Total interest:** P1.50 * 20 = **P30.00**
**Important Notes:**
* The 6%-60 day method is an approximation. It assumes a 360-day year, which is slightly different from the actual number of days in a year.
* For precise interest calculations, especially for longer periods or different interest rates, it's best to use the standard simple interest formula:
Interest = Principal x Rate x Time
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