Question

Ms.alpana decided to save rs 10000 per year for five
years for buying bike she will earn 5 percent interest o her investment the
bike will cost her is 60000, kindly calculate whether she will be able to
afford buying bike with her investment monet at the end of the 5 years​

Answer 1

Answer:

Ms. Alpha will fall short of money

Explanation:

Saving at the end of 1st year = 10, 000

WIth 5 % interest gain, she will have = 10, 000 + 0.05 x10,000

WIth 5 % interest gain, she will have after one year = 10, 500

Similarly,

WIth 5 % interest gain and saving of 10,000 more, she will have after 2nd year = 21525

WIth 5 % interest gain and saving of 10,000 more, she will have after 3rd year = 33101.25

WIth 5 % interest gain and saving of 10,000 more, she will have after 4th year = 45256

WIth 5 % interest gain and saving of 10,000 more, she will have after 5th year = 58019

Since this is slightly less than the price of bike, so she will not be able to purchase