In the given question, the initial investment should be invested for 16 years so that | ||||||
the amount is equal to the car price i.e 9,000 | ||||||
Also, there seems to be a printing mistake in question wherein the initial investment | ||||||
should have been 3600 instead of 36000 | ||||||
Amount= | Principal * (1+ rate)^time | |||||
9000= | 3600*(1+rate)^16 | |||||
(1+rate)^16= | 9000/3600 | |||||
(1+rate)^16= | 2.50 | |||||
(1+rate)= | 2.50^(1/16) | |||||
(1+rate)= | 1.05894 | |||||
Rate= | 0.05894 | |||||
Rate= | 5.89% | |||||
Hence option B is correct. |
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