Question

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?​

Answer 1

Answer:

Rs. 36659.7

Step-by-step explanation:

P = Rs. 26400  

Rate of Interest = 15 %

Time = 2 years and 4 months

In this question, first, we will compute the compounded interest for 2 years.

A = P(1 + R/100)ⁿ

⇒ 26400(1 + 15/100)²

⇒ 26400*115/100*115/100

⇒ A = Rs. 34914  

Now, Simple Interest for 4 months will be calculated and Principal will be Rs. 34914.

Simple Interest = (P*R*T)/100

⇒ (34914*15*4)/(12*100)

⇒ 2094840/1200

⇒ Rs. 1745.7

Total Amount = 34914 + 1745.7

= Rs. 36659.7

Hence, after 2 years and 4 months, Kamala will pay Rs. 36659.7 to clear the loan.