Question

You want to save ₹1,20,000 to buy your first self-driving magic carpet. You deposit ₹80,000 in a bank at an interest rate of 5%, percent per annum. How many years do you have to wait before you can buy your magic carpet?

Answer 1

Answer:

10 years

Step-by-step explanation:

Principal invested P = 80000

Interest rate r = 5%

Let us assume simple interest.

Then interest amount should be 40000 to have total of 120000 to buy the magical carpet.

For simple interest the formula is PTR/100 where T = no of years

i.e. 40000 = 80000(5)T/100

Simplify to get

T = 10 years.

Hence after 10 years, we will get a total amount of Rs.120000/- to buy the magical carpet.

Answer 2

Answer:

10 years.

Step-by-step explanation:

We have been given that you want to save ₹1,20,000 to buy your first self-driving magic carpet. You deposit ₹80,000 in a bank at an interest rate of 5%, percent per annum.

We will use simple interest formula to solve our given problem.

$A=P(1+rt)$, where,

A = Final amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

$5\%=\frac{5}{100}=0.05$

$120,000=80,000(1+0.05t)$

$\frac{120,000}{80,000}=\frac{80,000(1+0.05t)}{80,000}$

$1.5=1+0.05t$

$1.5-1=1-1+0.05t$

$0.5=0.05t$

$0.05t=0.5$

$\frac{0.05t}{0.05}=\frac{0.5}{0.05}$

$t=10$

Therefore, you have to wait 10 years before you can buy your magic carpet.