BBA 1007-COURSEWORK - COURSEWORK 1 RM1000 was invested on...

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COURSEWORK 1) RM1000 was invested on 15 March 2005.If the simple interest rate offered was 10% per annum, find the interest received on 29 August 2005 using (a) exact time and exact simple interest, (b) exact time and ordinary simple interest, (c) approximate time and exact simple interest, (d) approximate time and ordinary simple interest. Concepts used Interest calculations (a) Exact time and exact simple interest I = 1000×0.1×167/365 = RM 45.75 (b) Exact time and ordinary simple interest I = 1000×0.1×167/360 = RM 46.39 (c) Approximate time and exact simple interest I = 1000×0.1×164/365 = RM 44.93 (d) Approximate time and ordinary simple interest I = 1000×0.1×164/360 = RM 45.56 Method (b) is called Banker’s Rule . This method is mostly used by banks in USA and in international business transactions but not in Malaysia. In Malaysia, calculation of interest is governed by a banking rule which states that the 365-day year must be used. In Canada,
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