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?
Time is 2 years and 4 months = 28 months or 2 + 13 years
First, we will calculate the compound interest for 2 years.
Taking this amount as principal, now we will calculate the simple interest on Rs.34914 for 13 years.
SI = Rs.34914×15100×13=Rs.1745.7
Therefore, the total amount to be paid in order to clear the loan = Rs.34914+Rs.1745.7=Rs.36659.7