Question

Ramesh deposit RM500 in the bank. The interest received of 5% per year is kept in the bank. Find the number of years it will take for the total savings to exceed RM750

Answer 1

Answer: It will take approximately 14.21 years for the total savings to exceed RM750.

Explanation:

750 = 500 x (1 + 0.05/1)^(1 x t)

1.5 = 1.05^t

ln(1.5) = ln(1.05^t)

t = ln(1.5) / ln(1.05)

Using a calculator, we get:

t ≈ 14.21 years

Answer 2

it will take more than 10 years for the total savings to exceed RM750.

Explanation:

Let's assume that Ramesh keeps his money in the bank for 'n' years. After 'n' years, the interest received would be 5% of RM500 for each year, so the interest received per year would be (5/100)*RM500 = RM25.

The total savings after 'n' years would be RM500 + RM25*n.

We want to find the number of years it will take for the total savings to exceed RM750, so we can set up the following inequality: RM500 + RM25*n > RM750.

Subtracting RM500 from both sides, we get: RM25*n > RM750 - RM500.

Combining like terms, we get: RM25*n > RM250.

Dividing both sides by RM25, we get: n > 10.

Therefore, it will take more than 10 years for the total savings to exceed RM750.