Question

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

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

Answer 1

The correct option is A

₹ 36659.7

Time is 2 years and 4 months = 28 months or $2\frac{1}{3}$ years
Principal, P = ₹ 26400
Rate of interest, $r=15\%$

First we will calculate the compound interest for 2 years

Amount, $A=P{[1+\frac{r}{100}]}^n$
$=26400{[1+\frac{15}{100}]}^2$
$=26400{[1+\frac{3}{20}]}^2$
$=26400{\left[\frac{23}{20}\right]}^2$
= ₹ 34914

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

Simple interest, $S.I.=34914\times \frac{15}{100}\times \frac{1}{3}=₹1745.7$

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