To find the number of years required, we can use the formula for simple interest:
I = P * r * t
Where:
I is the interest earned,
P is the principal (initial amount),
r is the interest rate, and
t is the time in years.
In this case, Umar wants the amount in the account (A) to become RM240,000. So, the interest earned (I) would be A - P. Substituting the values into the formula, we have:
A - P = P * r * t
240,000 - 50,000 = 50,000 * 0.2 * t
190,000 = 10,000t
Dividing both sides by 10,000, we get:
t = 190,000 / 10,000
t = 19
Therefore, Umar would need 19 years for the amount in the account to become RM240,000.
Umar invested RM50,000 in a bank with simple interest rate is 20% per annum, find the number of years required if Umar wants the amount in the account to become RM240,000.
1 answer