Umar invested RM 15,000 in a bank for 14 months. If the simple interest rate is 4.5% per annum, find the accumulated amount.
The simple interest formula is:
I = P * r * t
Where:
I = Accumulated Interest
P = Principal Amount (initial investment)
r = Interest Rate per annum
t = Time in years
Given:
P = RM 15,000
r = 4.5% = 0.045 (as a decimal)
t = 14 months = 14/12 = 1.17 years (approx.)
Substituting the values into the simple interest formula:
I = 15,000 * 0.045 * 1.17
I ≈ 885.75 RM
Therefore, the accumulated amount is:
Principal Amount + Accumulated Interest
= 15,000 + 885.75
= 15,885.75 RM
The accumulated amount is approximately RM 15,885.75.