Question

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

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

Answer 1

The correct option is A

Rs. 36659.7

Time is 2 years and 4 months = 28 months or 2 + $\frac{1}{3}\text{years}$

First, we will calculate the compound interest for 2 years.

$A={[1+\frac{R}{100}]}^n$

$A=Rs.26400{[1+\frac{15}{100}]}^2$

$A=Rs.34914$

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

$\text{SI}=Rs.34914\times \frac{15}{100}\times \frac{1}{3}=Rs.1745.7$

Therefore, the total amount to be paid in order to clear the loan = $Rs.34914+Rs.1745.7=Rs.36659.7$