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.


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

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