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.
so you want to collect 240K-50K = 190K in interest
20% of 50K is 10K per year
so it will take 190/10 = 19 years.
To find the number of years required for Umar's investment to reach RM240,000, we can use the formula for simple interest:
Simple Interest = Principal x Rate x Time
In this case, the principal is RM50,000, the rate is 20% per annum, and we need to find the time.
Let's plug in the values we know:
Simple Interest = RM240,000 - RM50,000 = RM190,000 (This is the interest amount Umar wants to earn)
Principal = RM50,000
Rate = 20% = 0.20
Using the formula, we have:
RM190,000 = RM50,000 x 0.20 x Time
To isolate Time, divide both sides of the equation by RM50,000 x 0.20:
RM190,000 / (RM50,000 x 0.20) = Time
Simplifying the equation:
RM190,000 / (RM10,000) = Time
Time = 19
So, it will take Umar 19 years for the amount in the account to become RM240,000.
To find the number of years required, we can use the formula for simple interest:
Simple Interest = Principal * Interest Rate * Time
Given:
Principal (P) = RM50,000
Interest Rate (R) = 20% = 0.2
Amount (A) = RM240,000
We need to find the time (T).
Rearranging the formula, we have:
Time (T) = Amount (A) / (Principal * Interest Rate)
Substituting the values, we get:
T = RM240,000 / (RM50,000 * 0.2)
T = RM240,000 / RM10,000
T = 24
Therefore, it will take 24 years for the amount in the account to become RM240,000.