Simple Interest
Math MCQs

Question :    What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 2% simple interest?

Correct Answer  $4144

Solution & Explanation

Solution

Given,

Principal (P) = $3700

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) = $3700 × 2% × 6

= $3700 ײ/₁₀₀ × 6

= ^{3700 × 2 × 6}/₁₀₀

= ^{7400 × 6}/₁₀₀

= ⁴⁴⁴⁰⁰/₁₀₀

= $444

Thus, Simple Interest = $444

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 = $3700 + $444

= $4144

Thus, Amount to be paid = $4144 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 = $3700

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

And, Time (t) = 6 years

Thus, Amount (A)

= $3700 + ($3700 × 2% × 6)

= $3700 + ($3700 ײ/₁₀₀ × 6)

= $3700 + (^{3700 × 2 × 6}/₁₀₀)

= $3700 + (^{7400 × 6}/₁₀₀)

= $3700 + (⁴⁴⁴⁰⁰/₁₀₀)

= $3700 + $444 = $4144

Thus, Amount (A) to be paid = $4144 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 $3700, the simple interest in 1 year

= ²/₁₀₀ × 3700

= ^{2 × 3700}/₁₀₀

= ⁷⁴⁰⁰/₁₀₀ = $74

Thus, simple interest for 1 year = $74

Therefore, simple interest for 6 years

= Simple interest for 1 year × 6

= $74 × 6 = $444

Thus, Simple Interest (SI) = $444

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3700 + $444

= $4144

Thus, Amount to be paid = $4144 Answer

Similar Questions

(1) Calculate the amount due if Joseph borrowed a sum of $3700 at 5% simple interest for 4 years.

(2) David took a loan of $4800 at the rate of 6% simple interest per annum. If he paid an amount of $6816 to clear the loan, then find the time period of the loan.

(3) Calculate the amount due if Jessica borrowed a sum of $3750 at 8% simple interest for 3 years.

(4) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 6% simple interest?

(5) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 9% simple interest?

(6) What amount will be due after 2 years if John borrowed a sum of $3100 at a 7% simple interest?

(7) Calculate the amount due if Jessica borrowed a sum of $3750 at 2% simple interest for 3 years.

(8) Jessica took a loan of $5500 at the rate of 9% simple interest per annum. If he paid an amount of $8470 to clear the loan, then find the time period of the loan.

(9) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 5% simple interest?

(10) Calculate the amount due if Jessica borrowed a sum of $3750 at 7% simple interest for 3 years.