Question

Anil borrowed 26400from bank to buy a scooter at rate of 15% per annum compound yearly .What amount will the pay at the end of 2 year 4 months to clear the lone

Answer 1

Answer:

$36,659.70

Explanation:

1) Compute the compounded interest for 2 years = Principal * (1 + Rate/100)ⁿ

(n = years)

26,400 * (1 + 15/100)²  = 26,400 * (115/100) * (115*100) = 34,914

2) Calculate simple Interest for 4 months = (Principal * Rate * Time)/100

(4 months = 1/3 of a year)

(34,914 * 15 * 4/12 / 100)  = 2,094,840/1,200  = 1745.7

3) Put together the 2 years and the 4 months

34,914 + 1745.7 0 =  $36,659.7 0