Question

Kamala borrowed Rs. 26400 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 to clear the loan?

• A. Rs.34,914
• B. Rs.34,915
• C. Rs.36,659
• D. Rs.45,569

Answer 1

The correct option is A

Rs.34,914

Amount = Principal $(1+\frac{r}{100}{)}^n$. Here $P=Rs26400,R=15,n$ = 2 years .

Amount to be paid after 2 years

= $26400(1+\frac{15}{100}{)}^2$
= $26400(1+\frac{3}{20}{)}^2$
= $26400(\frac{23}{20}{)}^2$

$=Rs34,914$