Simple Interest
Math MCQs

Question :    Calculate the amount due if Robert borrowed a sum of $3100 at 3% simple interest for 3 years.

Correct Answer  $3379

Solution & Explanation

Solution

Given,

Principal (P) = $3100

Rate of Simple Interest (SI) = 3%

Time (t) = 3 years

Thus, Amount (A) = ?

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

Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% 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) = $3100 × 3% × 3

= $3100 ׳/₁₀₀ × 3

= ^{3100 × 3 × 3}/₁₀₀

= ^{9300 × 3}/₁₀₀

= ²⁷⁹⁰⁰/₁₀₀

= $279

Thus, Simple Interest = $279

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 = $3100 + $279

= $3379

Thus, Amount to be paid = $3379 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 = $3100

Rate of Simple Interest (SI) or (R) = 3%

And, Time (t) = 3 years

Thus, Amount (A)

= $3100 + ($3100 × 3% × 3)

= $3100 + ($3100 ׳/₁₀₀ × 3)

= $3100 + (^{3100 × 3 × 3}/₁₀₀)

= $3100 + (^{9300 × 3}/₁₀₀)

= $3100 + (²⁷⁹⁰⁰/₁₀₀)

= $3100 + $279 = $3379

Thus, Amount (A) to be paid = $3379 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 3%

This, means, $3 per $100 per year

∵ For $100, the simple interest for 1 year = $3

∴ For $1, the simple interest for 1 year = ³/₁₀₀

∴ For $3100, the simple interest in 1 year

= ³/₁₀₀ × 3100

= ^{3 × 3100}/₁₀₀

= ⁹³⁰⁰/₁₀₀ = $93

Thus, simple interest for 1 year = $93

Therefore, simple interest for 3 years

= Simple interest for 1 year × 3

= $93 × 3 = $279

Thus, Simple Interest (SI) = $279

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3100 + $279

= $3379

Thus, Amount to be paid = $3379 Answer

Similar Questions

(1) Margaret took a loan of $6700 at the rate of 6% simple interest per annum. If he paid an amount of $9916 to clear the loan, then find the time period of the loan.

(2) In how much time a principal of $3050 will amount to $3233 at a simple interest of 2% per annum?

(3) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 2% simple interest for 4 years.

(4) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 6% simple interest.

(5) Mary took a loan of $4100 at the rate of 8% simple interest per annum. If he paid an amount of $7052 to clear the loan, then find the time period of the loan.

(6) 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.

(7) If Susan paid $3942 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(8) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 7% simple interest for 3 years.

(9) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $8326 to clear the loan, then find the time period of the loan.

(10) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 9% simple interest.