Question

Neha borrowed 24000 from the State Bank of India to buy a scooter. If the rate of interest
be 10% per annum compounded annually, what payment will she have to make after 2
years 3 months?
1
Hint. 2 years 3 months F2
years.
4​

Answer 1

Answer:

Answer Present value = Rs. 24000 Interest rate =10% per annum Time =2 years 3 month =(2+1/4) years =214 years. Amount (A)=P(1+R/100)n×[1+(1/4×R)/100]

Where,\(P=\)Presentvalue\(R=\)Annualinterestrate\(n=\)Timeinyears

∴A=24000(1+10/100)2×[1+(1/4×10)/100] ⇒A=24000(1+1/10)2×[1+1/40] ⇒A=24000(11/10)2×[41/40] ⇒A=24000×121/100×41/40 ⇒A=24×121×41/4 ⇒A=6×121×41 ⇒A=29766 ∴ Amount =Rs.29766 ∴ Neha should pay Rs. 29766 to the bank after 2 years 3 months.