A man wishes to keep his money in a savings deposit at 25% compound interest so that after three years he can buy a car for ₦150,000. How much does he need ...

Assessment: JAMB UTME - Mathematics - 2000 Subject: General Mathematics

Question 1 Report

A man wishes to keep his money in a savings deposit at 25% compound interest so that after three years he can buy a car for ₦150,000. How much does he need to deposit?
Answer Details
Amount A = P(1+r)n;
A = ₦150,000, r = 25%, n = 3.
150,000 = P(1+0.25)3 = P(1.25)3
P = 150,000/1.253 =₦76,800.00

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