Umar invested RM X in a bank for 30 months and his investment is worth RM17,437.50. If the simple interest rate is 6.5% per annum, find the value of X.

Question

a.
RM25,000

b.
no answer

c.
RM24,900

d.
RM25,100

e.
RM24,000

f.
RM15,000

Answer 1

To find the value of X, we need to calculate the simple interest earned over 30 months.

The formula for simple interest is: I = P * r * t, where I is the interest, P is the principal amount, r is the interest rate, and t is the time in years.

In this case, we are given the following information:
Interest (I) = RM17,437.50
Interest rate (r) = 6.5% per annum
Time (t) = 30 months

First, we need to convert the time from months to years. Since there are 12 months in a year, 30 months is equal to 30/12 = 2.5 years.

Now we can rearrange the formula to solve for the principal amount (P):
P = I / (r * t)

P = 17,437.50 / (0.065 * 2.5)
P = 17,437.50 / 0.1625
P ≈ 107,384.61

Therefore, the value of X is approximately RM107,384.61.

Since none of the given options match this value, the correct answer is b. no answer.