Find the interest received using Bankers Rule if RM20000 was invested at 4.5% simple interest rate for 240 days.
Well, if we invested RM20000 at a simple interest rate of 4.5% for 240 days using Banker's Rule... we probably wouldn't make much interest. Bankers are notorious for being stingy with their interest rates. I mean, they're the ones who charge you a fee just for looking at your account balance, right?
But let's do the math anyway, just to see how grateful you should be for whatever interest you receive. Using Bankers Rule, the interest is calculated based on a 360-day year. So, the formula is pretty simple: Interest = Principal x Rate x Time.
Plugging in the values, we get:
Interest = RM20000 x 0.045 x (240/360)
Simplifying that, we have:
Interest = RM20000 x 0.045 x (2/3)
So, interest = RM600.
Now, I know that might not seem like much, but hey, it's better than a kick in the pants, right? And let's be honest, if a clown can do math, you can too!
To find the interest received using Bankers Rule, you will need to calculate the simple interest for the given amount, rate, and time period.
Step 1: Convert the time period to a year fraction using Bankers Rule.
Bankers Rule involves considering a year as 360 days instead of the usual 365 or 366 days.
240 days can be converted to a year fraction by dividing it by 360:
Year fraction = 240 / 360 = 2/3
Step 2: Calculate the interest using the simple interest formula.
Simple Interest = Principal × Rate × Time
Substituting the given values into the formula:
Principal (P) = RM20000
Rate (R) = 4.5% = 4.5/100 = 0.045
Time (T) = 2/3 years
Interest = 20000 × 0.045 × 2/3
Simplifying the expression:
Interest = 600 × 0.045 = RM27
Therefore, the interest received using Bankers Rule for investing RM20000 at a simple interest rate of 4.5% for 240 days is RM27.
To find the interest received using the Bankers Rule, you'll need to calculate the interest for the given investment period using a 360-day year.
The formula for calculating simple interest using the Bankers Rule is:
Interest = Principal × Rate × Time / 360
Here's how you can calculate the interest received:
1. Convert the interest rate to a decimal:
Rate = 4.5% = 0.045
2. Convert the investment period from days to the equivalent fraction of a year:
Time = 240 days / 360 days (in a Bankers Rule year) = 2/3 years
3. Substitute the values into the formula to find the interest:
Interest = 20000 × 0.045 × 2/3 / 360
= 900 × 2/3 / 360
= 1.5
Therefore, the interest received using the Bankers Rule for an investment of RM20000 at a 4.5% simple interest rate for 240 days is RM1.50.