Question

# Kamala borrowed ₹ 26,400 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 and 4 months to clear the loan?

A

₹ 38,659.70

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B

₹ 40,659.70

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C

₹ 36,659.70

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D

₹ 34,659.70

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Solution

## The correct option is D ₹ 36,659.70 Here, Principal (P) = ₹ 26,400, Time (n) = 2 years 4 months, Rate of interest (R) = 15% p.a Amount for 2 years (A) =P(1+R100)n=26400(1+15100)2=26400(1+320)2=26400(2320)2=26400×2320×2320 =₹ 34,914 We shall now calculate the interest for 4 months(=412years=13 years) We know that S.I. = PRT100 where, S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years). Interest for 4 months at the rate of 15% per annum = 34914×15×13×100 = ₹ 1745.70 ∴Total amount = ₹ 34,914 + ₹ 1745.70 = ₹ 36,659.70

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