You want to save
\[₹117{,}000\] to buy your first self-driving magic carpet. You deposit
\[₹90{,}000\] in a bank at an interest rate of
\[6\%\] per annum.
How many years do you have to wait before you can buy your magic carpet?
Answer (1)
Answer:To determine the number of years required to save ₹117,000 by depositing ₹90,000 at an interest rate of 6% per annum, we need to calculate the time using the compound interest formula:A = P(1 + r)^twhere:- A is the amount after time t (₹117,000)- P is the principal amount (₹90,000)- r is the annual interest rate in decimal form (0.06)- t is the time in years.Rearranging for t:t = log(A/P) / log(1 + r)Substituting the values:t = log(117000/90000) / log(1.06)Calculating:t ≈ log(1.3) / log(1.06) ≈ 0.1133 / 0.0253 ≈ 4.48 years.Therefore, you need to wait approximately 4.48 years, or about 4 years and 6 months, to accumulate enough funds to purchase your magic carpet.Step-by-step explanation:
