Question

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% per annum. How many years do you have to wait before you can buy your magic carpet?

Answer 1

5 years

Explanation:

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Answer 2

Answer: He has to wait for 4.5 years to buy magic carpet

Explanation:

Since we have given that

Amount she need to save to buy a first self driving magic carpet = $1,17,000

Amount she deposited (P) = $90000

Rate of interest (r)=6%

Let the number of years be 'n'

As we know the formula for "Compound Interest":

`A=P(1(r)/(100))^n\\\\117000=90000(1+(6)/(100))^n\\\\(117000)/(90000)=(1+0.06)^n\\\\1.3=(1.06)^n\\\\\text{Taking log both sides}\\\\\log1.3=n* \log 1.06\\\\(\log 1.3)/(\log 10.6)=n\\\\n=4.5\ years`

Hence, he has to wait for 4.5 years to buy magic carpet.