Simple Interest
Math MCQs

Question :  ( 1 of 10 )  Find the amount to be paid if Jennifer borrowed a sum of $5250 at 2% simple interest for 7 years.

Correct Answer  $5985

Solution & Explanation

Solution

Given,

Principal (P) = $5250

Rate of Simple Interest (SI) = 2%

Time (t) = 7 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) = $5250 × 2% × 7

= $5250 ײ/₁₀₀ × 7

= ^{5250 × 2 × 7}/₁₀₀

= ^{10500 × 7}/₁₀₀

= ⁷³⁵⁰⁰/₁₀₀

= $735

Thus, Simple Interest = $735

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 = $5250 + $735

= $5985

Thus, Amount to be paid = $5985 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 = $5250

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

And, Time (t) = 7 years

Thus, Amount (A)

= $5250 + ($5250 × 2% × 7)

= $5250 + ($5250 ײ/₁₀₀ × 7)

= $5250 + (^{5250 × 2 × 7}/₁₀₀)

= $5250 + (^{10500 × 7}/₁₀₀)

= $5250 + (⁷³⁵⁰⁰/₁₀₀)

= $5250 + $735 = $5985

Thus, Amount (A) to be paid = $5985 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 $5250, the simple interest in 1 year

= ²/₁₀₀ × 5250

= ^{2 × 5250}/₁₀₀

= ¹⁰⁵⁰⁰/₁₀₀ = $105

Thus, simple interest for 1 year = $105

Therefore, simple interest for 7 years

= Simple interest for 1 year × 7

= $105 × 7 = $735

Thus, Simple Interest (SI) = $735

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5250 + $735

= $5985

Thus, Amount to be paid = $5985 Answer

Similar Questions

(1) In how much time a principal of $3150 will amount to $3339 at a simple interest of 3% per annum?

(2) Calculate the amount due if Jennifer borrowed a sum of $3250 at 7% simple interest for 3 years.

(3) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 7% simple interest for 7 years.

(4) Find the amount to be paid if Richard borrowed a sum of $5600 at 4% simple interest for 7 years.

(5) Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $12160 to clear the loan, then find the time period of the loan.

(6) If Nancy paid $4482 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(7) Find the amount to be paid if John borrowed a sum of $5200 at 8% simple interest for 8 years.

(8) Calculate the amount due if Christopher borrowed a sum of $4000 at 3% simple interest for 4 years.

(9) Sandra took a loan of $6900 at the rate of 6% simple interest per annum. If he paid an amount of $10626 to clear the loan, then find the time period of the loan.

(10) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 2% simple interest for 8 years.