Jambmaths question:
A man wishes to keep some money in a saving deposit at 25% compound interest, so that after 3 years he can buy a car for N150,000. How much does he need to deposit now?
Option A:
N76,800.00
Option B:
N85,714.28
Option C:
N96,000.00
Option D:
N112,000.50
Jamb Maths Solution:
$\begin{align} & A=P{{(1+r)}^{n}}\text{ (compound interest formula)} \\ & P=?,\text{ }r=0.25,\text{ }n=3,\text{ }A=150,000 \\ & A=150,000=P{{(1+0.25)}^{3}} \\ & 150,000=P{{(1.25)}^{3}} \\ & \frac{150,000}{{{1.25}^{3}}}=P \\ & P=\frac{150,000}{{{1.25}^{3}}}=\frac{150,000}{1.953125}=N76,800 \\\end{align}$
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