Aditya borrowed ₹ 30,000 from a bank to buy a Washing machine at a rate of 10% interest p.a. compounded yearly. What amount will he pay at the end of 2 years and 4 months to clear the loan?
₹ 37,510
Time is 2 years and 4 months = 28 months or 2 + 13 years
First we will calculate the compound interest for 2 years
A = [1+R100]n
A = 30,000 [1+10100]2
A = 30,000 [1110]2
A = ₹ 36,300
Taking this amount as principal, now we will calculate simple interest on ₹ 36,300 for 13 years.
SI = 36,300 × 10100 × 13 = ₹ 1210
Therefore, total amount to be paid in order to clear the loan is ₹ 36,300 + ₹ 1210 = ₹ 37,510