Neha borrowed Rs. 24000 from the State Bank of India to buy a scooter. If the rate of interest be 10% per annum compounded annually, what payment will she have to make after 2 years 3 months?
Present value = Rs.24000
Interest rate = 10 % per annum
Time = 2 years 3 month = (2 + 1/4) years = 2
years.
Amount (A) = P (1 + R/100)n × [1 + (1/4 × R)/100]
[Where, P = Present value
R = Annual interest rate
n = Time in years]
∴ A = 24000 (1 + 10/100)2 × [1 + (1/4 × 10)/100]
⇒ A = 24000 (1 + 1/10)2 × [1 + 1/40]
⇒ A = 24000 (11/10)2 × [41/40]
⇒ A = 24000 × 121/100 × 41/40
⇒ A = 24 × 121 × 41/4
⇒ A = 6 × 121 × 41
⇒ A = 29766
∴ Amount = Rs.29766
∴ Neha should pay Rs.157464 to the bank after 2 years 3 months.
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