2 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? (Hint: Find A for 2 years with interest is compounded yearly and then find SI on the 2nd year amount for years )
The amount borrowed from the bank = Principal amount, P = Rs 26400
Compound interest rate, R = 15% p.a.
Time period = 2 years 4 months =
We know, Amount when interest is compounded annually, A =
Therefore, for the first 2 years, amount, A = = Rs 34914
Now, this would act as principal for the next 1/3 year. We find the SI on Rs 34914 for 1/3 year.
SI = = Rs 1745.70
Therefore, Required amount at the end of 2 years and 4 months = A + SI = Rs (34914 + 1745.70) = Rs 36659.70