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?
Given: Principal (P) = Rs. 26,400
Time (n) = 2 years 4 months = 7/3
Rate of interest (R) = 15% p.a.
**Concept: 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 interest for 2 years (A), will be given as:
On putting the values in the formula, we get,
Therefore, the total amount = Rs. 36,659.70
Thus, Kamala will pay Rs. 36,659.70 at the end of 2 years and 4 months to clear the loan.
Calculate the amount and compound interest on
(a) Rs 10,800 for 3 years at per annum compounded annually.
(b) Rs 18,000 for years at 10% per annum compounded annually.
(c) Rs 62,500 for years at 8% per annum compounded half yearly.
(d) Rs 8,000 for 1 year at 9% per annum compounded half yearly.
(You could use the year by year calculation using SI formula to verify).
(e) Rs 10,000 for 1 year at 8% per annum compounded half yearly.