Umar invested RM 15,000 in a bank for 14 months. If the simple interest rate is 4.5% per annum, find the accumulated amount.

Answer 1

The simple interest formula is:

I = P * r * t

Where:
I = Accumulated Interest
P = Principal Amount (initial investment)
r = Interest Rate per annum
t = Time in years

Given:
P = RM 15,000
r = 4.5% = 0.045 (as a decimal)
t = 14 months = 14/12 = 1.17 years (approx.)

Substituting the values into the simple interest formula:

I = 15,000 * 0.045 * 1.17
I ≈ 885.75 RM

Therefore, the accumulated amount is:
Principal Amount + Accumulated Interest
= 15,000 + 885.75
= 15,885.75 RM

The accumulated amount is approximately RM 15,885.75.