Simple Interest
Math MCQs

Question :    What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 6% simple interest?

Correct Answer  $4256

Solution & Explanation

Solution

Given,

Principal (P) = $3800

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) = $3800 × 6% × 2

= $3800 ×⁶/₁₀₀ × 2

= ^{3800 × 6 × 2}/₁₀₀

= ^{22800 × 2}/₁₀₀

= ⁴⁵⁶⁰⁰/₁₀₀

= $456

Thus, Simple Interest = $456

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 = $3800 + $456

= $4256

Thus, Amount to be paid = $4256 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 = $3800

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

And, Time (t) = 2 years

Thus, Amount (A)

= $3800 + ($3800 × 6% × 2)

= $3800 + ($3800 ×⁶/₁₀₀ × 2)

= $3800 + (^{3800 × 6 × 2}/₁₀₀)

= $3800 + (^{22800 × 2}/₁₀₀)

= $3800 + (⁴⁵⁶⁰⁰/₁₀₀)

= $3800 + $456 = $4256

Thus, Amount (A) to be paid = $4256 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 $3800, the simple interest in 1 year

= ⁶/₁₀₀ × 3800

= ^{6 × 3800}/₁₀₀

= ²²⁸⁰⁰/₁₀₀ = $228

Thus, simple interest for 1 year = $228

Therefore, simple interest for 2 years

= Simple interest for 1 year × 2

= $228 × 2 = $456

Thus, Simple Interest (SI) = $456

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3800 + $456

= $4256

Thus, Amount to be paid = $4256 Answer

Similar Questions

(1) Margaret took a loan of $6700 at the rate of 7% simple interest per annum. If he paid an amount of $9983 to clear the loan, then find the time period of the loan.

(2) What amount does William have to pay after 6 years if he takes a loan of $3500 at 5% simple interest?

(3) If Charles borrowed $3900 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(4) Susan had to pay $3978.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(5) What amount will be due after 2 years if Mark borrowed a sum of $3700 at a 8% simple interest?

(6) What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 9% simple interest?

(7) Barbara took a loan of $5100 at the rate of 6% simple interest per annum. If he paid an amount of $7242 to clear the loan, then find the time period of the loan.

(8) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 10% simple interest?

(9) Find the amount to be paid if Charles borrowed a sum of $5900 at 8% simple interest for 7 years.

(10) Find the amount to be paid if Karen borrowed a sum of $5950 at 5% simple interest for 7 years.