Question

Kamala borrowed ₹26400 from a bank to buy a scooter at a rate of 15% per annum. What amount will she pay at the end of 2 years and 4 months to clear the loan?
[3 marks]
[NCERT-Ex 8.3, Q2]
[Compound interest]

Answer 1

Solution:
Given, P = ₹26,400, R = 15% per annum, T = 2 years and 4 months

We know that,
$\text{A}=\text{P}{(1+\frac{\text{R}}{100})}^n$

Now, amount that needs to be paid after 2 years,
$\text{A}=\text{26400}{(1+\frac{\text{15}}{100})}^2=34914$
(1 mark)

Now, taking this amount as principal, we will calculate simple interest on ₹34914 for 4 months.
Interest for 4 months $=\frac{34914\times 15\times \frac{1}{3}}{100}=1745.7\cdots [4\text{months}=\frac{1}{3}\text{years}]$
(1 mark)

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