Kamala borrowed RS 26,400 from 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 4months to clear the loan?
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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+ R/100) Time
Interest = Amount - Principal
Amount = 26400(1+ 15/100 ) 2
Amount=34914
Now, the interest for next 1/3 years will be calculated using Simple Interest
S.I. = (P×R×T)/100
S.I. = 34914×15×1/100×3
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
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