Question

Vicky borrowed rupees 26400 from a bank to buy a Scooty at the rate of 15 % per annum compounded yearly what amount will he pay at the end of 2 years and 4 months to clear the loan

Answer 1

1 year interest = 26400 × 15 ÷ 100 = 3960
28 month interest = 28 × 3960 ÷ 12 = 9240
He pay amount at the end éof the 2 year and 4 months to clear loan = 26400 + 9240 = 35640

Answer 2

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, Vicky will pay Rs. 36659.7 to clear the loan.