Umar invested RM50,000 in a bank with simple interest rate is 15% per annum, find the number of years required if Umar wants the amount in the account to become RM237,500.
a.
25 years
b.
20 years
c.
19 years
d.
24 years
e.
21 years
f.
no answer
To find the number of years required, we can use the formula for simple interest:
Interest = Principal * Rate * Time
Let's assume that the number of years required is 't'.
237,500 = 50,000 + (50,000 * 0.15 * t)
237,500 = 50,000 + 7,500t
7,500t = 237,500 - 50,000
7,500t = 187,500
t = 187,500 / 7,500
t = 25
Therefore, it will take 25 years for the amount in the account to become RM237,500.
The answer is (a). 25 years