MATH SOLVE

3 months ago

Q:
# You want to save ₹1,17,000 to buy your first self-driving magic carpet. You deposit ₹90,000 in a bank at an interest rate of 6 % 6%6, percent per annum. How many years do you have to wait before you can buy your magic carpet?

Accepted Solution

A:

Answer:4.50 yrStep-by-step explanation:I assume that this is compound interest.
The compound interest equation is
[tex]A = P(1+ \frac{r }{ n})^{nt}[/tex]You don't give the frequency of compounding, so I assume that it is once per year.
Data:
A = ₹117 000
P = ₹90 000
r = 6 % = 0.06
n = 1
Calculations:
[tex]117 000 = 90 000(1+ \frac{0.06 }{ 1})^{1 \times t}[/tex][tex]117 000 = 90 000(1+ 0.06)^{t}[/tex]
Divide each side by 90 0000
[tex]1.3 = 1.06^{t}[/tex]
Take the logarithm of each side
log1.3 = tlog1.06
0.1139 = 0.025 31t
Divide each side by 0.025 31
t = 4.50 yr
You can buy your magic carpet in 4.50 yr.