Question

kamala borrowed rupee 26400 from a bank to buy a scooter at rate of 15% per annum compounded yearly. what amount will she pay at the end of 2 years and 4 months to clear to loan

Answer 1

Solution :-

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.

Answer 2

Given –

Principal (P) = Rs. 26,400,

Time (n) = 2 years 4 months = 2 years 4/12 months = 2 1/3 years

 Rate of interest (R) = 15% p.a.

Amount for 2 years (A) =  P [(1+r/100)n]

For 2 years,

A = 26400 [1 + 15/100]2

    = 26400 [1 + 3/20] 2

    = 26400 [23/20] 2

   = 26400 x 23/20 x 23/20

   = Rs. 34914

For 1/3 years,  T = 1/3 years, rate = 15%, P = 34914

Intrest = 34914 X 1 X 15/3X100

                = Rs 1745.70

Therefore, Total amount = Rs. 34,914 + Rs. 1,745.70

                                                     = Rs 36,659.70

Answer - At the end of 2 years and 4 months to clear to loan Kamala will pay Rs 36,659.70