A debt of RM3,000 on 8 February 2016 became RM3,120 on 7 June 2016. Calculate the value of the debt on 18 April 2016 using the Banker's Rule. (hint: find r% first)
To calculate the value of the debt on 18 April 2016 using the Banker's Rule, we need to first find the interest rate (r%).
First, let's calculate the number of days between 8 February 2016 and 7 June 2016:
Number of days = (31 days in March + 30 days in April + 31 days in May) + (24 days in June - 18 days in April)
= 92 days
Next, let's find r% using the formula:
r% = (Total interest / Principal) * (365 / Number of days)
= ((RM3,120 - RM3,000) / RM3,000) * (365 / 92)
= (RM120 / RM3,000) * (3.967)
= 0.04 * 3.967
= 0.15868
Therefore, r% is approximately 0.15868.
Finally, let's calculate the value of the debt on 18 April 2016 using the Banker's Rule:
Value on 18 April 2016 = Principal + (Principal * r%)
= RM3,000 + (RM3,000 * 0.15868)
= RM3,000 + RM475.02
= RM3,475.02
The value of the debt on 18 April 2016 using the Banker's Rule is approximately RM3,475.02.