Q. 24.2( 275 Votes )

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 :

Given:
Principal (P) = Rs. 26,400

Time (n) = 2 years 4 months = 2 years + 4/12 years = 7/3 years
Rate of interest (R) = 15% p.a.

 **Concept: Since the interest is compounded annually so the amount for 2 years and 4 months can be calculated as finding the compound interest for 2 years and then calculating simple interest for 4 months on the amount obtained after 2 years. 

Thus, the amount for 2 years (A), will be given as:

 

On putting the values in the formula, we get,



=₹ 34,914
And at the rate of 15% p.a, for time = 4 months = , and also the Principal will be the previous Amount obtained after 2 years = Rs. 34, 914
Simple Interest = = ₹ 1745.70


Therefore, the total amount = 34,914 + 1745.70 = ₹ 36,659.70

Thus, Kamala will pay Rs. 36,659.70 at the end of 2 years and 4 months to clear the loan.

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