How much of the principal invested if the investment will be worth RM20,000 in five years at a simple interest rate of 5% per annum.
P = Po+Po*r*T = 20,000
Po+Po*0.05*60 = 20,000
Po+3Po = 20,000
Po =
Oh, well if we're talking about making money, I'll have to put on my serious face. Simple interest, huh? Let me calculate that for you.
To find out the principal invested, we can use the formula:
Principal = (Interest × Time) / Rate
Plugging in the given values, we have:
Principal = (RM20,000 × 5) / (5% × 100)
Now, let me do the math real quick. Grabbing my trusty calculator...
Boop boop boop...
And the answer is... RM 100,000!
So, if you invest RM100,000 with a simple interest rate of 5% per annum, you'll have RM20,000 in five years. Time to start counting your money, my friend!
To calculate the principal invested, we can use the formula for calculating simple interest:
Interest = Principal * Rate * Time
Since we know the interest and rate, we can rearrange the formula to solve for the principal:
Principal = Interest / (Rate * Time)
In this case, the interest is the difference between the final investment amount (RM20,000) and the initial principal invested:
Interest = Final Amount - Principal
Now, let's calculate the principal step by step:
1. Calculate the interest:
Interest = Final Amount - Principal
Interest = RM20,000 - Principal
2. Calculate the principal:
Principal = Interest / (Rate * Time)
Principal = (RM20,000 - Principal) / (0.05 * 5)
3. Simplify the equation:
Principal = (RM20,000 - Principal) / 0.25
4. Multiply both sides of the equation by 0.25 to eliminate the denominator:
0.25 * Principal = RM20,000 - Principal
5. Rearrange the equation to solve for Principal:
1.25 * Principal = RM20,000
6. Divide both sides of the equation by 1.25:
Principal = RM20,000 / 1.25
7. Calculate the principal:
Principal = RM16,000
Therefore, the principal invested is RM16,000.
To determine the principal invested, we can use the formula for calculating simple interest:
Simple Interest (SI) = (Principal) x (Interest Rate) x (Time)
We are given the following information:
- Simple Interest (SI) = RM20,000
- Interest Rate = 5% per annum
- Time = 5 years
Plugging in these values into the formula, we get:
RM20,000 = (Principal) x (0.05) x (5)
Now, we can solve for the Principal:
Divide both sides of the equation by (0.05) x (5):
RM20,000 / (0.05) x (5) = Principal
Simplifying the equation gives us:
RM20,000 / 0.25 = Principal
Dividing RM20,000 by 0.25, we find that:
Principal = RM80,000
So, the principal invested was RM80,000.