Kamala borrowed ₹ 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? (Hint: Find A for 2 years with interest is compounded yearly and then find SI on the 2^nd year amount for 4/12 years)

Solution:

Amount (A) = P[1 + (r/100)]ⁿ

Principal (P) = ₹ 26400

Time period (n) = 2 years 4 months

Rate % (R) = 15% compounded annually

Steps:

Firstt, we will calculate Compound Interest (C.I) for the period of 2 years

A = P[1 + (r/100)]ⁿ

= 26400[1 + (15/100)]²

= 26400[(100/100) + (15/100)]²

= 26400 × 115/100 × 115/100

= 26400 × 23/20 × 23/20

= 26400 × 1.3225

= 34914

C.I. = A - P

= 34914 - 26400

= 8514

Now, we will find Simple Interest (S.I) for the period of 4 months

Principal for 4 months after C.I. for 2 years = ₹ 34,914

We know that,

S.I =  PRT/100

Here T = 4 months = 4/12 years = 1/3 years

S.I. for 4 months = (1/3) × 34914 × (15/100)

= (1/3) × 34914 × (3/20)

= 34914/20

= 1745.70

Total interest for 2 years 4 months = 8514 + 1745.70

= 10259.70

Total amount for 2 years 4 months = 26400 + 10259.70

= ₹ 36659.70

☛ Check: NCERT Solutions for Class 8 Maths Chapter 8

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Video Solution:

Kamala borrowed ₹ 26400 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? (Hint: Find A for 2 years with interest is compounded yearly and then find SI on the 2^nd year amount for 4/12 years.)

NCERT Solutions Class 8 Maths Chapter 8 Exercise 8.3 Question 2

Summary:

Kamala borrowed ₹ 26400 from a Bank to buy a scooter at a rate of 15% p.a. compounded yearly. The amount Kamala will have to pay after 2 years 4 months to clear the loan is ₹ 36659.70.

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