2.Kamala borrowed ₹ 26,400 from a Bank to buy a scooter at a rate of 15% per annum compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan? (Hint: Find amount for 2 years with interest is compounded yearly and then find SI on the 2nd year amount for \(\frac { 4 }{ 12 }\) years).

We have:
P = ₹ 26,400

R = 15% p.a. compounded yearly

n = 2 years and 4 months

So, amount for 2 years=\(P(1+\frac{R}{100})^n\)

=\(26,400(1+\frac{15}{100})^2\)

=\(26,400(\frac{23}{20})^2\)

=\(26,400\times\frac{23}{20}\times\frac{23}{20}\)

=\(66\times529=₹\; 34,914\)

Principal for 2 years=₹ 34,914

So, SI for 4 months =\(\frac{P\times R\times n}{100\times 12}\)

=\(\frac{34,914\times 15 \times 4}{100\times 12}\)

=\(₹ 1745.70 \)

Thus, the mount after 2 years and 4 months = ₹ 34,914 + ₹ 1745.70 = ₹ 36,659.70

Hence, the total amount to be paid by Kamla = ₹ 36,659.70