Amount borrowed = Principal= ₹26400= P Rate=15%p.a =r Time =t=2 years 4 months =2 4/12 =2 1/3 =7/3 years . Amount to be paid for principal compounded yearly = P(1+ r/100)^t So Amount she shall pay at the end of 2 years 4 months to clear the loan =26400(1+15/100)^7/3 =26400(1+ 15/100(7/3) [this approximation is binomial theorem which. implies (1+x)^n can be approximated as 1+nx where x is very much less than 1] =26400(1+35/100) =26400(1.35)= ₹35640.
Answers
Step-by-step explanation:
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Answer:
Kamala borrowed Rs 26,400 from a Bank to buy a scooter at a rate of 15% p.a. compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan? (Round answer to nearest whole number)
Step-by-step explanation:
Principal (P) = Rs26,400
Rate (R) = 15% per annum
Number of years (n) = 2
12
4
The amount for 2 years and 4 months can be calculated by first calculating the amount for 2 years using the compound interest formula, and then calculating the simple interest for 4 months on the amount obtained at the end of 2 years.
For calculating amount of first 2 years,
Amount = Principal(1+
100
R
)
Time
Interest = Amount - Principal
Amount = 26400(1+
100
15
)
2
Amount=34914
Now, the interest for next
3
1
years will be calculated using Simple Interest
S.I. =
100
(P×R×T)
S.I. =
100
34914×15×
3
1
S.I. = 1745.70
Therefore, total amount to be paid after 2 years and 4 months = 34,914+1,745.70=Rs 36,659.70
Nearest whole number to 36659.70 is 36660.