Find the interest rate using Bankers Rule if RM990 was invested for 21 days and received interest RM2.
a.
To use the Banker's Rule to find the interest rate, we first need to calculate the annual interest rate.
The formula for the Banker's Rule is:
Interest = Principal * Rate * Time
Substituting the given values:
2 = 990 * Rate * (21/365)
Simplifying:
2 = 990 * Rate * 0.0575
Now, isolate the rate:
Rate = 2 / (990 * 0.0575)
Rate ≈ 0.0365
So, the interest rate using Banker's Rule is approximately 0.0365 or 3.65%.