Banker's Rule is used to calculate the number of days when there is a discrepancy between the actual number of days in a year and the assumed number of days in a year (usually 360).
To find the number of days using Banker's Rule, we can use the formula:
Number of days = (Interest / (Principal * Interest rate)) * (360 / assumed number of days)
In this case:
Principal = RM990
Interest = RM200
Interest rate = 5%
Assumed number of days = 360
Using the formula:
Number of days = (200 / (990 * 0.05)) * (360 / 360)
Number of days = (200 / 49.5) * 1
Number of days = 4.04 * 1
Number of days = 4 days (rounded to nearest whole number)
Therefore, using Banker's Rule, the investment was held for approximately 4 days.
Find the number of days using Bankers Rule if RM990 was invested at 5% simple interest rate and received interest RM200.
1 answer