Simple Interest
Math MCQs

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

Correct Answer  $3953

Solution & Explanation

Solution

Given,

Principal (P) = $3350

Rate of Simple Interest (SI) = 9%

Time (t) = 2 years

Thus, Amount (A) = ?

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

Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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 × 9% × 2

= $3350 ×⁹/₁₀₀ × 2

= ^{3350 × 9 × 2}/₁₀₀

= ^{30150 × 2}/₁₀₀

= ⁶⁰³⁰⁰/₁₀₀

= $603

Thus, Simple Interest = $603

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 + $603

= $3953

Thus, Amount to be paid = $3953 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) = 9%

And, Time (t) = 2 years

Thus, Amount (A)

= $3350 + ($3350 × 9% × 2)

= $3350 + ($3350 ×⁹/₁₀₀ × 2)

= $3350 + (^{3350 × 9 × 2}/₁₀₀)

= $3350 + (^{30150 × 2}/₁₀₀)

= $3350 + (⁶⁰³⁰⁰/₁₀₀)

= $3350 + $603 = $3953

Thus, Amount (A) to be paid = $3953 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 9%

This, means, $9 per $100 per year

∵ For $100, the simple interest for 1 year = $9

∴ For $1, the simple interest for 1 year = ⁹/₁₀₀

∴ For $3350, the simple interest in 1 year

= ⁹/₁₀₀ × 3350

= ^{9 × 3350}/₁₀₀

= ³⁰¹⁵⁰/₁₀₀ = $301.5

Thus, simple interest for 1 year = $301.5

Therefore, simple interest for 2 years

= Simple interest for 1 year × 2

= $301.5 × 2 = $603

Thus, Simple Interest (SI) = $603

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $603

= $3953

Thus, Amount to be paid = $3953 Answer

Similar Questions

(1) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 2% simple interest?

(2) If Nancy paid $4648 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(3) In how much time a principal of $3100 will amount to $3410 at a simple interest of 2% per annum?

(4) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 7% simple interest.

(5) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $7844 to clear the loan, then find the time period of the loan.

(6) Find the amount to be paid if Sarah borrowed a sum of $5850 at 2% simple interest for 8 years.

(7) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 7% simple interest?

(8) Thomas took a loan of $5600 at the rate of 8% simple interest per annum. If he paid an amount of $8288 to clear the loan, then find the time period of the loan.

(9) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 2% simple interest?

(10) William took a loan of $5000 at the rate of 9% simple interest per annum. If he paid an amount of $8150 to clear the loan, then find the time period of the loan.