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. ₹36659.70
• B. ₹46659.70
• C. ₹36660
• D. ₹37545

Answer 1

The correct option is A

₹36659.70

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 = $P{[1+\frac{R}{100}]}^n$
A = $26400{[1+\frac{15}{100}]}^2$
A = ₹34914

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

SI = $34914\times \frac{15}{100}\times \frac{1}{3}$ = ₹1745.70

Total amount = ₹34914 + ₹1745.70
= ₹36659.70

Therefore, total amount to be paid in order to clear the loan is ₹36659.70.