Simple Interest
Math MCQs

Question :    What amount does James have to pay after 6 years if he takes a loan of $3000 at 2% simple interest?

Correct Answer  $3360

Solution & Explanation

Solution

Given,

Principal (P) = $3000

Rate of Simple Interest (SI) = 2%

Time (t) = 6 years

Thus, Amount (A) = ?

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

Thus, here 2% simple interest means, Rate of Simple Interest (SI) is 2% 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) = $3000 × 2% × 6

= $3000 ײ/₁₀₀ × 6

= ^{3000 × 2 × 6}/₁₀₀

= ^{6000 × 6}/₁₀₀

= ³⁶⁰⁰⁰/₁₀₀

= $360

Thus, Simple Interest = $360

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 = $3000 + $360

= $3360

Thus, Amount to be paid = $3360 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 = $3000

Rate of Simple Interest (SI) or (R) = 2%

And, Time (t) = 6 years

Thus, Amount (A)

= $3000 + ($3000 × 2% × 6)

= $3000 + ($3000 ײ/₁₀₀ × 6)

= $3000 + (^{3000 × 2 × 6}/₁₀₀)

= $3000 + (^{6000 × 6}/₁₀₀)

= $3000 + (³⁶⁰⁰⁰/₁₀₀)

= $3000 + $360 = $3360

Thus, Amount (A) to be paid = $3360 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 2%

This, means, $2 per $100 per year

∵ For $100, the simple interest for 1 year = $2

∴ For $1, the simple interest for 1 year = ²/₁₀₀

∴ For $3000, the simple interest in 1 year

= ²/₁₀₀ × 3000

= ^{2 × 3000}/₁₀₀

= ⁶⁰⁰⁰/₁₀₀ = $60

Thus, simple interest for 1 year = $60

Therefore, simple interest for 6 years

= Simple interest for 1 year × 6

= $60 × 6 = $360

Thus, Simple Interest (SI) = $360

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3000 + $360

= $3360

Thus, Amount to be paid = $3360 Answer

Similar Questions

(1) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 8% simple interest.

(2) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 9% simple interest?

(3) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 10% simple interest?

(4) Find the amount to be paid if Joseph borrowed a sum of $5700 at 9% simple interest for 7 years.

(5) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $12040 to clear the loan, then find the time period of the loan.

(6) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 8% simple interest?

(7) What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 10% simple interest?

(8) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 10% simple interest?

(9) Calculate the amount due if Mary borrowed a sum of $3050 at 6% simple interest for 4 years.

(10) Find the amount to be paid if Sarah borrowed a sum of $5850 at 10% simple interest for 7 years.