Question

A pensioner invests her savings of RM20,000 at 8% interest. How much income will she receive each year?

a) RM1,600
b) RM1,800
c) RM2,000
d) RM2,200

Answer 1

The pensioner's annual income from an investment of RM20,000 at an 8% interest rate will be RM1,600.

Step-by-step explanation:

The pensioner invested her savings of RM20,000 at an interest rate of 8%. To calculate the annual income she will receive, you multiply the principal amount by the interest rate. The formula for this calculation is:

Annual Income = Principal × Interest Rate

In this case:

Annual Income = RM20,000 × 0.08

Annual Income = RM1,600

Therefore, the pensioner will receive an annual income of RM1,600.