TWO YEARS AGO, KIM INVESTED RMP AT HER ACCOUNT WHICH EARNS r% simple interest . after eighteen months , she noticed that the amount had become rm 10450 and today amount is rm 10600 . FIND THE VALUE OF p and r
p(1+18(r/12)) = 10450
p(1+2r) = 10600
(1 + 3r/2)/(1+2r) = 10450/10600
r = 0.03
now use that in either equation to find p.
To find the values of p and r, we need to use the formula for calculating simple interest:
Simple Interest = (Principal * Rate * Time) / 100
Let's break down the given information step by step:
1. Two years ago, Kim invested P at her account:
Let's assume that the principal amount invested is P in RM.
2. After 18 months, the amount had become RM 10,450:
The interest is earned for 18 months, which is 1.5 years. So, the time (T) in the formula is 1.5 years. The amount the investment grew to after 18 months is RM 10,450.
Using the formula for simple interest, we can set up the equation:
10,450 = (P * r * 1.5) / 100
Now, let's solve for P by multiplying both sides of the equation by 100 and dividing by 1.5:
[(10,450 * 100) / 1.5] = P * r
P * r = 696,666.67
3. Today, the amount is RM 10,600:
Let's assume this is the total amount including both the principal and the interest. We will use this information to find the value of r.
10,600 = P + (P * r * 2) / 100
Simplifying this equation, we get:
10,600 = P * (1 + 2r/100)
Now, we have two equations:
Equation 1: P * r = 696,666.67
Equation 2: 10,600 = P * (1 + 2r/100)
By solving these two equations simultaneously, we can find the values of P and r.