Tutorial 4a(ii) - Simple Interest and Compounded Interest

1. If a sum of RM4,913 becomes RM12,167 in three years then find the rate of interest per annum
compounded semi-annually.

2. The amount received at 10% per annum compounded quarterly after 2 years is RM3,150. Then, find the
principle invested?

3. RM1,800 is invested in scheme A at 10% per annum for 2 years at simple interest while another
RM1,800 was invested in scheme B at 10% compounded quarterly. Which scheme will give more profit
to investor and find the difference between the interest earned?

4. What is the interest earned on the principle of RM18,000 at the rate of 12% for 1 year and 4 months
compounded monthly?
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5. Find the simple interest on RM68,000 at 16 % per annum for a period of 9 months?
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6. Alvin borrows some money at the rate of 6% p.a. for the first two years. He borrows the money at the
rate of 9% p.a. for the next three years, and at the rate of 14% p.a. for the period beyond five years. If
he pays a total interest of RM11,400 at the end of nine years, how much money did he borrow?

7. Susan lends RM3,000 to Mary at 10% p.a. and then Mary lends the same sum to Maria at 12% p. a.
Find Mary’s gain over a period of 3 years.

8. Scott wants to invest RM1,000 for 1 year. At Bank A, his investment will collect 3% interest
compounded daily while at Bank B, his investment will collect 3.50% interest compounded monthly.
Which bank offers a better return? How much more will he receive by choosing that bank over the
other?