Question

Kamala borrowed ₹26400 from a bank to buy a scooter at a rate of 15% p.a. compounded yearly. What amount will she pay at the end of 2 years to clear the loan?

• A. ₹ 35,814
• B. ₹ 44,914
• C. ₹ 34,845
• D. ₹ 34,914

Answer 1

The correct option is D ₹ 34,914

Given: $P=₹26400R=15,n=2years$

We know that, Amount $=P(1+\frac{r}{100}{)}^n$.

= $26400(1+\frac{15}{100}{)}^2$

= $26400(1+\frac{3}{20}{)}^2$

= $26400(\frac{23}{20}{)}^2$

= $26400\left(\frac{23\times 23}{20\times 20}\right)$

$=₹34,914$
Thus, Kamal will have to pay ₹34,914 to clear the loan.