Question

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

Given,

Principal $=Rs.26400$

Rate of interest $=15$

Time(n)= $2$ years and $4$months

Amount for 2 years,

$A=P{(1+\frac{R}{100})}^n$

$A=26400{(1+\frac{15}{100})}^2$

$A=Rs.34914$

Interest for 4 months = 4/12 = 1/3 years

Interest for 1/3 years at the rate of 15% $=\frac{34914\times 15\times 1}{3\times 100}$

$=Rs.1745.70$

Total amount$=Rs.34914+Rs.1745.70=Rs.36,659.70$

The amount she will pay at the end of 2 years and 4 months to clear the loan

$=Rs.36,659.70$