Ali saved RM15,000 on 10 May 2014 in an account that offers r% simple interest per year. If the simple interest earned on 25 October 2014 is RM 120, find the value of r using exact time.
a.
1.0%
b.
3.5%
c.
2.2%
d.
no answer
e.
1.7%
f.
2.8%
To find the value of r, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 100
We are given the following information:
Principal (P) = RM15,000
Simple Interest (I) = RM120
We can rearrange the formula to solve for the Rate (R):
Rate (R) = (Interest * 100) / (Principal * Time)
Time is the time period from 10 May 2014 to 25 October 2014. We need to calculate the exact time in years.
10 May 2014 to 10 October 2014 = 5 months
10 October 2014 to 25 October 2014 = 15 days
Since we are calculating the time in exact years, we divide the total months by 12 and the total days by 365:
time in years = (5/12) + (15/365)
Now we can substitute the values into the formula:
Rate (R) = (120 * 100) / (15000 * ((5/12) + (15/365)))
Calculating this expression will give us the value of r.