00:01
Hello students, we are given a question here.
00:02
Sarah wants to have $6 ,000 in our savings account when she retires.
00:08
Okay, how much she must put in the account now if the account pays the fixed interest rate of 8 % in order to ensure that she has a $6 ,000 in the 20 years.
00:21
Okay.
00:21
So now, what we are given here, first of all, we are given the data as principal amount should be like, sorry, we are asked about the principal amount and the amount after 20 years is given as $6 ,000 or can be said as future value.
00:37
Okay, and we can write it as directly as future value.
00:42
Okay, students, and time period is given as here 20 years, rate of interest i is given as here 8 percentage.
00:53
Okay, students, it can be written as 0 .08.
00:56
T can be written as here n.
01:00
Okay, n is the number of years.
01:02
So now what we are asked to present value.
01:05
So basically we are supposed to know that here fv is equals to pv times 1 plus i and whole power is n.
01:13
So fv is 6 lakh dollar is equal to pv times of 1 plus what is i? it is 0 .08 and whole power is n is equal to 20.
01:25
Okay, students, so pv is equals to here 6 lakh dollar and divided by 1 .08 and whole power is 20...