Simple Interest
Math MCQs

Question :    What amount will be due after 2 years if James borrowed a sum of $3000 at a 6% simple interest?

Correct Answer  $3360

Solution & Explanation

Solution

Given,

Principal (P) = $3000

Rate of Simple Interest (SI) = 6%

Time (t) = 2 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% per annum.

Method (1) Using Formula

Calculation of Simple Interest

Formula to Calculate Simple Interest

Simple Interest (SI) = Principal × Rate × Time

Thus, Simple Interest (SI) = $3000 × 6% × 2

= $3000 ×⁶/₁₀₀ × 2

= ^{3000 × 6 × 2}/₁₀₀

= ^{18000 × 2}/₁₀₀

= ³⁶⁰⁰⁰/₁₀₀

= $360

Thus, Simple Interest = $360

Calculation of Amount

The total money paid to the lender by a borrower is called the Amount.

In other words, sum of priciple and interest is called the Amount.

Formula to Calculate the Amount

Amount = Principal + Interest

Thus, Amount = $3000 + $360

= $3360

Thus, Amount to be paid = $3360 Answer

Method (2)

Calculation of Amount when Principal, Rate of Simple Interest and Time are given

Calculation of Amount directly using Principal, SI, and Time

Formula to calculate the Amount

Amount (A) = Principal (P) + Principal(P) × Rate of Interest (SI) × Time (t)

⇒ A = P + PRT

Here in the question, P = $3000

Rate of Simple Interest (SI) or (R) = 6%

And, Time (t) = 2 years

Thus, Amount (A)

= $3000 + ($3000 × 6% × 2)

= $3000 + ($3000 ×⁶/₁₀₀ × 2)

= $3000 + (^{3000 × 6 × 2}/₁₀₀)

= $3000 + (^{18000 × 2}/₁₀₀)

= $3000 + (³⁶⁰⁰⁰/₁₀₀)

= $3000 + $360 = $3360

Thus, Amount (A) to be paid = $3360 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 6%

This, means, $6 per $100 per year

∵ For $100, the simple interest for 1 year = $6

∴ For $1, the simple interest for 1 year = ⁶/₁₀₀

∴ For $3000, the simple interest in 1 year

= ⁶/₁₀₀ × 3000

= ^{6 × 3000}/₁₀₀

= ¹⁸⁰⁰⁰/₁₀₀ = $180

Thus, simple interest for 1 year = $180

Therefore, simple interest for 2 years

= Simple interest for 1 year × 2

= $180 × 2 = $360

Thus, Simple Interest (SI) = $360

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3000 + $360

= $3360

Thus, Amount to be paid = $3360 Answer

Similar Questions

(1) Calculate the amount due if Jennifer borrowed a sum of $3250 at 6% simple interest for 3 years.

(2) In how much time a principal of $3150 will amount to $3465 at a simple interest of 2% per annum?

(3) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 6% simple interest?

(4) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $8600 to clear the loan, then find the time period of the loan.

(5) Sandra took a loan of $6900 at the rate of 10% simple interest per annum. If he paid an amount of $11730 to clear the loan, then find the time period of the loan.

(6) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $5984 to clear the loan, then find the time period of the loan.

(7) Calculate the amount due if John borrowed a sum of $3200 at 6% simple interest for 4 years.

(8) If Anthony paid $5160 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(9) Calculate the amount due if Mary borrowed a sum of $3050 at 6% simple interest for 3 years.

(10) How much loan did Lisa borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6957.5 to clear it?