Question

Kamala borrowed # 26,400 from a Bank to buy a scooter st a rate of 15% pa compounded yearly . What amount will she pay at the end of 2 years and 4 months to clear the loan? (Hint: Find A for 2 years with interest is compounded yearly and then find SI on the 4 2nd year amount for years) 12​

Answer 1

In first, we will find final amount of the first 2 years by using the formula of coumpound interest ,

P= 26400 rs.

R = 15%

T = 2 years

then,

A = P × ( 1+ R/100)^(t)

= 26400×( 1 + 15/100 ) ^ (2)

= 26400 × 115/100 × 115/100

= 34914 rs.

at the end, we will find the last 4 month's amount by using the formula of simple interest ,

P = 34914 rs.

R = 15/3 = 5%

T = 1 × 3 = 3

then,

S.I. = P × R × T /100

= 34914 × 5 × 3 /100

= 523710 /100

= 5237.10 rs.