You want to save ₹120,000 to buy your first self-driving magic carpet. You deposit ₹80,000 in a bank at an interest rate of 5%, percent per annul.How many years do you have to wait before you can buy your magic carpet?
Accepted Solution
A:
Answer:[tex]t=10\ years[/tex]Step-by-step explanation:we know thatThe simple interest formula is equal to[tex]A=P(1+rt)[/tex]whereA is the Final Investment ValueP is the Principal amount of money to be investedr is the rate of interest t is Number of Time Periodsin this problem we have[tex]t=?\ years\\ P=R80,000\\ A=R120,000\\r=5\%=5/100=0.05[/tex]substitute in the formula above[tex]120,000=80,000(1+0.05t)[/tex][tex]1.5=(1+0.05t)[/tex][tex]0.05t=1.5-1[/tex][tex]0.05t=0.5[/tex][tex]t=10\ years[/tex]