Simple Interest
Math MCQs

Question :    Find the amount to be paid if Michael borrowed a sum of $5300 at 6% simple interest for 7 years.

Correct Answer  $7526

Solution & Explanation

Solution

Given,

Principal (P) = $5300

Rate of Simple Interest (SI) = 6%

Time (t) = 7 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) = $5300 × 6% × 7

= $5300 ×⁶/₁₀₀ × 7

= ^{5300 × 6 × 7}/₁₀₀

= ^{31800 × 7}/₁₀₀

= ²²²⁶⁰⁰/₁₀₀

= $2226

Thus, Simple Interest = $2226

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 = $5300 + $2226

= $7526

Thus, Amount to be paid = $7526 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 = $5300

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

And, Time (t) = 7 years

Thus, Amount (A)

= $5300 + ($5300 × 6% × 7)

= $5300 + ($5300 ×⁶/₁₀₀ × 7)

= $5300 + (^{5300 × 6 × 7}/₁₀₀)

= $5300 + (^{31800 × 7}/₁₀₀)

= $5300 + (²²²⁶⁰⁰/₁₀₀)

= $5300 + $2226 = $7526

Thus, Amount (A) to be paid = $7526 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 $5300, the simple interest in 1 year

= ⁶/₁₀₀ × 5300

= ^{6 × 5300}/₁₀₀

= ³¹⁸⁰⁰/₁₀₀ = $318

Thus, simple interest for 1 year = $318

Therefore, simple interest for 7 years

= Simple interest for 1 year × 7

= $318 × 7 = $2226

Thus, Simple Interest (SI) = $2226

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5300 + $2226

= $7526

Thus, Amount to be paid = $7526 Answer

Similar Questions

(1) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 5% simple interest?

(2) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 9% simple interest?

(3) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 4% simple interest?

(4) Find the amount to be paid if Karen borrowed a sum of $5950 at 2% simple interest for 8 years.

(5) Elizabeth took a loan of $4900 at the rate of 6% simple interest per annum. If he paid an amount of $6958 to clear the loan, then find the time period of the loan.

(6) Calculate the amount due if Thomas borrowed a sum of $3800 at 8% simple interest for 4 years.

(7) Find the amount to be paid if Barbara borrowed a sum of $5550 at 7% simple interest for 8 years.

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

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

(10) Find the amount to be paid if Barbara borrowed a sum of $5550 at 7% simple interest for 7 years.