To use the Banker's Rule to find the interest rate, we first need to calculate the annual interest rate.
The formula for the Banker's Rule is:
Interest = Principal * Rate * Time
Substituting the given values:
2 = 990 * Rate * (21/365)
Simplifying:
2 = 990 * Rate * 0.0575
Now, isolate the rate:
Rate = 2 / (990 * 0.0575)
Rate ≈ 0.0365
So, the interest rate using Banker's Rule is approximately 0.0365 or 3.65%.
Find the interest rate using Bankers Rule if RM990 was invested for 21 days and received interest RM2.
a.
1 answer
1 answer