What is the ROI of RM 60,000 invested at 5.75% for 240 consecutive months?

Assuming the 5.75% is an annual interest rate and the investment lasts 240 months (20 years):

1. Simple Interest

Formula:

$$\text{Interest} = P \times r \times t$$

• Principal = RM60,000
• Annual rate = 5.75% = 0.0575
• Time = 20 years

Interest earned:

$$60,000 \times 0.0575 \times 20 = \textbf{RM69,000}$$

Final amount:

• RM129,000

ROI:

$$\frac{69,000}{60,000} \times 100 = \textbf{115\%}$$

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2. Compound Interest (Compounded Annually)

Formula:

$$A = P(1+r)^t$$ $$A = 60,000(1.0575)^{20} \approx \textbf{RM183,435.99}$$

Interest earned:

• RM123,435.99

ROI:

$$\frac{123,435.99}{60,000} \times 100 \approx \textbf{205.73\%}$$

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Summary

Method	Interest Earned	Final Amount	ROI
Simple Interest	RM69,000.00	RM129,000.00	115.00%
Compound (Annual)	RM123,435.99	RM183,435.99	205.73%

If your investment compounds monthly (which is common for many investments), the result is higher:

• Monthly rate = 5.75% ÷ 12 = 0.47917%

• Final amount:

  $$60,000 \times \left(1+\frac{0.0575}{12}\right)^{240} \approx \textbf{RM188,807.08}$$
• Interest earned: RM128,807.08
• ROI: 214.68%