Simple Interest
Math MCQs

Question :    What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 6% simple interest?

Correct Answer  $3752

Solution & Explanation

Solution

Given,

Principal (P) = $3350

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) = $3350 × 6% × 2

= $3350 ×⁶/₁₀₀ × 2

= ^{3350 × 6 × 2}/₁₀₀

= ^{20100 × 2}/₁₀₀

= ⁴⁰²⁰⁰/₁₀₀

= $402

Thus, Simple Interest = $402

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 = $3350 + $402

= $3752

Thus, Amount to be paid = $3752 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 = $3350

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

And, Time (t) = 2 years

Thus, Amount (A)

= $3350 + ($3350 × 6% × 2)

= $3350 + ($3350 ×⁶/₁₀₀ × 2)

= $3350 + (^{3350 × 6 × 2}/₁₀₀)

= $3350 + (^{20100 × 2}/₁₀₀)

= $3350 + (⁴⁰²⁰⁰/₁₀₀)

= $3350 + $402 = $3752

Thus, Amount (A) to be paid = $3752 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 $3350, the simple interest in 1 year

= ⁶/₁₀₀ × 3350

= ^{6 × 3350}/₁₀₀

= ²⁰¹⁰⁰/₁₀₀ = $201

Thus, simple interest for 1 year = $201

Therefore, simple interest for 2 years

= Simple interest for 1 year × 2

= $201 × 2 = $402

Thus, Simple Interest (SI) = $402

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $402

= $3752

Thus, Amount to be paid = $3752 Answer

Similar Questions

(1) If Ashley paid $4914 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(2) Anthony took a loan of $6600 at the rate of 7% simple interest per annum. If he paid an amount of $9372 to clear the loan, then find the time period of the loan.

(3) Find the amount to be paid if Barbara borrowed a sum of $5550 at 7% simple interest for 8 years.

(4) How much loan did Michael borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6095 to clear it?

(5) Find the amount to be paid if Linda borrowed a sum of $5350 at 3% simple interest for 7 years.

(6) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 9% simple interest?

(7) Robert had to pay $3565 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(8) Elizabeth took a loan of $4900 at the rate of 9% simple interest per annum. If he paid an amount of $8869 to clear the loan, then find the time period of the loan.

(9) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 8% simple interest?

(10) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 8% simple interest.