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How many days are needed to earn a simple interest of rm20 if rm1,000 is saved in a bank that pays 6

1 Answer

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Final answer:

To earn RM20 in simple interest from a RM1,000 deposit at a 6% annual rate takes approximately 122 days, considering the interest is not compounded within the year.

Step-by-step explanation:

The student's question is about determining the number of days to earn simple interest of RM20 when RM1,000 is saved in a bank at an interest rate of 6%. To find the number of days, we use the simple interest formula:

Simple Interest (I) = principal (P) × rate (r) × time (t)

Since we have the interest amount (I = RM20), the principal (P = RM1,000), and the rate (r = 6% per year), we need to find the time in years and then convert it to days. Assuming the rate is compounded annually, the formula can be rearranged to solve for time (t).

First, we convert the rate from a percentage to a decimal by dividing by 100:

r = 6% / 100 = 0.06

Now, we solve for time (t) in years:

20 = 1000 × 0.06 × t

t = 20 / (1000 × 0.06)

t = 0.3333 years

To convert years to days, we multiply the result by the number of days in a year:

t (in days) = 0.3333 years × 365 days/year

t (in days) ≈ 121.67 days

Therefore, it takes approximately 122 days to earn RM20 in simple interest on a RM1,000 deposit at a 6% annual rate.

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