Simple Interest
Math MCQs

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

Correct Answer  $3752

Solution & Explanation

Solution

Given,

Principal (P) = $3350

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) = $3350 × 2% × 6

= $3350 ײ/₁₀₀ × 6

= ^{3350 × 2 × 6}/₁₀₀

= ^{6700 × 6}/₁₀₀

= ⁴⁰²⁰⁰/₁₀₀

= $402

Thus, Simple Interest = $402

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 + $402

= $3752

Thus, Amount to be paid = $3752 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) = 2%

And, Time (t) = 6 years

Thus, Amount (A)

= $3350 + ($3350 × 2% × 6)

= $3350 + ($3350 ײ/₁₀₀ × 6)

= $3350 + (^{3350 × 2 × 6}/₁₀₀)

= $3350 + (^{6700 × 6}/₁₀₀)

= $3350 + (⁴⁰²⁰⁰/₁₀₀)

= $3350 + $402 = $3752

Thus, Amount (A) to be paid = $3752 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 $3350, the simple interest in 1 year

= ²/₁₀₀ × 3350

= ^{2 × 3350}/₁₀₀

= ⁶⁷⁰⁰/₁₀₀ = $67

Thus, simple interest for 1 year = $67

Therefore, simple interest for 6 years

= Simple interest for 1 year × 6

= $67 × 6 = $402

Thus, Simple Interest (SI) = $402

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $402

= $3752

Thus, Amount to be paid = $3752 Answer

Similar Questions

(1) What amount does John have to pay after 6 years if he takes a loan of $3200 at 9% simple interest?

(2) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $9048 to clear the loan, then find the time period of the loan.

(3) If Donna paid $5238 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(4) Mark took a loan of $6800 at the rate of 8% simple interest per annum. If he paid an amount of $10608 to clear the loan, then find the time period of the loan.

(5) In how much time a principal of $3050 will amount to $3507.5 at a simple interest of 5% per annum?

(6) Calculate the amount due after 9 years if Elizabeth borrowed a sum of $5450 at a rate of 2% simple interest.

(7) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 6% simple interest?

(8) Robert took a loan of $4200 at the rate of 9% simple interest per annum. If he paid an amount of $6468 to clear the loan, then find the time period of the loan.

(9) How much loan did Melissa borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8085 to clear it?

(10) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 5% simple interest.