Question

Umar invested RM50,000 in a bank with simple interest rate is 15% per annum, find the number of years required if Umar wants the amount in the account to become RM200,000.

Answer 1

To find the number of years required, we can use the formula for simple interest:

I = P * r * t

Where:
I = interest earned
P = principal amount
r = interest rate per time period
t = number of time periods

We are given:
P = RM50,000
r = 15% per annum = 15/100 = 0.15
I = RM200,000 - RM50,000 = RM150,000 (the difference between the desired amount and the principal amount)

Substituting these values into the formula, we get:

RM150,000 = RM50,000 * 0.15 * t

Dividing both sides of the equation by RM50,000 * 0.15, we get:

t = RM150,000 / (RM50,000 * 0.15)

Simplifying, we find:

t = 20 years

Therefore, it will take Umar 20 years for the amount in the account to become RM200,000.