Simple Interest
Math MCQs

Question :    Calculate the amount due if Jennifer borrowed a sum of $3250 at 6% simple interest for 4 years.

Correct Answer  $4030

Solution & Explanation

Solution

Given,

Principal (P) = $3250

Rate of Simple Interest (SI) = 6%

Time (t) = 4 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) = $3250 × 6% × 4

= $3250 ×⁶/₁₀₀ × 4

= ^{3250 × 6 × 4}/₁₀₀

= ^{19500 × 4}/₁₀₀

= ⁷⁸⁰⁰⁰/₁₀₀

= $780

Thus, Simple Interest = $780

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 = $3250 + $780

= $4030

Thus, Amount to be paid = $4030 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 = $3250

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

And, Time (t) = 4 years

Thus, Amount (A)

= $3250 + ($3250 × 6% × 4)

= $3250 + ($3250 ×⁶/₁₀₀ × 4)

= $3250 + (^{3250 × 6 × 4}/₁₀₀)

= $3250 + (^{19500 × 4}/₁₀₀)

= $3250 + (⁷⁸⁰⁰⁰/₁₀₀)

= $3250 + $780 = $4030

Thus, Amount (A) to be paid = $4030 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 $3250, the simple interest in 1 year

= ⁶/₁₀₀ × 3250

= ^{6 × 3250}/₁₀₀

= ¹⁹⁵⁰⁰/₁₀₀ = $195

Thus, simple interest for 1 year = $195

Therefore, simple interest for 4 years

= Simple interest for 1 year × 4

= $195 × 4 = $780

Thus, Simple Interest (SI) = $780

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3250 + $780

= $4030

Thus, Amount to be paid = $4030 Answer

Similar Questions

(1) Calculate the amount due if William borrowed a sum of $3500 at 4% simple interest for 3 years.

(2) Calculate the amount due if Barbara borrowed a sum of $3550 at 9% simple interest for 4 years.

(3) Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $7650 to clear the loan, then find the time period of the loan.

(4) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $11780 to clear the loan, then find the time period of the loan.

(5) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 2% simple interest?

(6) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $8256 to clear the loan, then find the time period of the loan.

(7) What amount will be due after 2 years if David borrowed a sum of $3200 at a 7% simple interest?

(8) David had to pay $3604 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(9) Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $6390 to clear the loan, then find the time period of the loan.

(10) Jennifer took a loan of $4500 at the rate of 6% simple interest per annum. If he paid an amount of $6660 to clear the loan, then find the time period of the loan.