Umar invested RM50,000 in a bank with simple interest rate is 20% per annum, find the number of years required if Umar wants the amount in the account to become RM240,000.
To find the number of years required, we can use the formula for simple interest:
I = P * r * t
Where:
I is the interest earned,
P is the principal (initial amount),
r is the interest rate, and
t is the time in years.
In this case, Umar wants the amount in the account (A) to become RM240,000. So, the interest earned (I) would be A - P. Substituting the values into the formula, we have:
A - P = P * r * t
240,000 - 50,000 = 50,000 * 0.2 * t
190,000 = 10,000t
Dividing both sides by 10,000, we get:
t = 190,000 / 10,000
t = 19
Therefore, Umar would need 19 years for the amount in the account to become RM240,000.