A debt of RM3,000 on 8 February 2018 became RM3,150 on 8 June 2018. Calculate the value of the debt on 19 May 2018 using the Banker's Rule. (hint: find r% first)
a.
RM3,070
b.
RM3,125
c.
RM3,120
d.
no answer
e.
RM2,900
f.
RM3,100
To find the value of the debt on 19 May 2018 using the Banker's Rule, we first need to find the interest rate (r%).
To calculate the interest rate, we use the following formula:
r = (d2 - d1) / d1 * (365 / t)
Where:
- r is the interest rate per annum
- d1 is the initial debt amount
- d2 is the final debt amount
- t is the number of days between d1 and d2.
Given:
- d1 = RM3,000 on 8 February 2018
- d2 = RM3,150 on 8 June 2018
- t = 121 days (from 8 February 2018 to 8 June 2018)
Calculating r:
r = (3,150 - 3,000) / 3,000 * (365 / 121)
r = 0.05 or 5%
Now, we can calculate the value of the debt on 19 May 2018 using the Banker's Rule.
To find the value of the debt on 19 May 2018, we first need to calculate the number of days between the initial debt date (8 February 2018) and the target date (19 May 2018).
The number of days between 8 February 2018 and 19 May 2018 is 100 days.
Next, we use the Banker's Rule formula:
Value on target date = initial debt amount + (initial debt amount * r * t / 365)
Value on 19 May 2018 = 3,000 + (3,000 * 0.05 * 100 / 365)
Value on 19 May 2018 = 3,109.59
Therefore, the value of the debt on 19 May 2018 using the Banker's Rule is RM3,109.59, which is approximately RM3,110.
The closest answer option is f. RM3,100.