Umar invested RM50,000 in a bank with simple interest rate is 15% per annum, find the number of years required if Umar wants the amount in the account to become RM200,000.
To find the number of years required, we can use the formula for simple interest:
I = P * r * t
Where:
I = interest earned
P = principal amount
r = interest rate per time period
t = number of time periods
We are given:
P = RM50,000
r = 15% per annum = 15/100 = 0.15
I = RM200,000 - RM50,000 = RM150,000 (the difference between the desired amount and the principal amount)
Substituting these values into the formula, we get:
RM150,000 = RM50,000 * 0.15 * t
Dividing both sides of the equation by RM50,000 * 0.15, we get:
t = RM150,000 / (RM50,000 * 0.15)
Simplifying, we find:
t = 20 years
Therefore, it will take Umar 20 years for the amount in the account to become RM200,000.