Question

Question 2
Kamala borrowed Rs 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?

Answer 1

Here, Principal (P) = Rs 26,400 Time (n) = 2 years 4 months, Rate of interest (R) = 15% p.a
Amount for 2 years (A) = $P{(1+\frac{R}{100})}^n=26400{(1+\frac{15}{100})}^2=26400{(1+\frac{3}{20})}^2$
$=26400{\left(\frac{23}{20}\right)}^2=26400\times \frac{23}{20}\times \frac{23}{20}$
= Rs 34,914
Interest for 4 months =$\frac{4}{12}=\frac{1}{3}$ Years at the rate of 15% =$\frac{34914\times 15\times 1}{300}$ =Rs 1745.70
$\therefore$ Total amount = Rs 34,914 + Rs 1745.70 = Rs 36,659.70