Question

Kamala borrowed ₹ 26,400 from a bank to buy a scooter at a rate of 15% interest p.a. compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan?

• A. Rs.36659.7
• B. ₹. 46659.7
• C. ₹ 36660
• D. ₹ 37545

Answer 1

The correct option is A Rs.36659.7

Time is 2 years and 4 months = 28 months or 2 + $\frac{1}{3}$ years

First we will calculate the compound interest for 2 years

A = ${[1+\frac{R}{100}]}^n$

A = 26400 ${[1+\frac{15}{100}]}^2$

A = 26400 ${\left[\frac{23}{20}\right]}^2$

A = ₹ 34914

Taking this amount as principal, now we will calculate simple interest on Rs 34914 for $\frac{1}{3}$ years.

SI = 34914 × $\frac{15}{100}$ × $\frac{1}{3}$ = ₹ 1745.7

Therefore, total amount to be paid in order to clear the loan is ₹ 34914 + ₹ 1745.7 = ₹ 36659.7