Subjects finance

Simple Interest

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Simple Interest


1. **Problem Statement:** Saddiq deposited RM15500 on 12 February 2024 in an account with 6.5% simple interest per annum. Find the interest earned on 20 May 2024 using approximate time and exact simple interest. 2. **Calculate Time Period (Days):** - From 12 Feb to 20 May: Feb (16 days: 29-12 since 2024 is leap year), Mar (31 days), Apr (30 days), May (20 days) - Total days = 16 + 31 + 30 + 20 = 97 days 3. **Convert Time to Years:** - Approximate time using 365 days in year - $$ t = \frac{97}{365} $$ years 4. **Calculate Simple Interest:** - Principal $P = 15500$ - Rate $R = 6.5 \% = 0.065$ - Time $t = \frac{97}{365}$ - Interest $I = P \times R \times t$ 5. **Substitute values:** - $$ I = 15500 \times 0.065 \times \frac{97}{365} $$ - $$ I = 15500 \times 0.065 \times 0.26575 = 267.57 $$ 6. **Final Answer:** - The interest earned is approximately RM267.57.