Question

Saiful deposits a sum of RM 5000 in a bank with interest rate of 4% per annum. What is the interest

earned by Saiful after 3 months ?​

Answer 1

Saiful has earned RM 50 after 3 months.

Explanation:

We are given the following:

x = 5000

y = 4% per 12 months (annually)

[Convert 4%/1 yr to three months]

Because 1 year = 12 months = 4% then:

3 months is 25% of 12 months, so find 25% of 4%.

25% of 4% is 1%

y = 1%

[Multiply x by y]

x * y = 5000*1% = 5050

[Subtract 5050 by the original, 5000]

5050 - 5000 = 50

Saiful has earned RM 50 after 3 months.