Question

Neha borrowed ₹ 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?

Answer 1

Given:

Present value= ₹ 24000

Interest rate= 10 % per annum

Time= 2 years 3 months = 2 ¼ years

To find the amount we have the formula,

Amount (A) = P (1+(R/100))ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ 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 = 24 × 121 × 41/4

⇒ A = ₹ 29766

∴ Neha has to pay ₹ 29766