Simple Interest
Math MCQs

Question :    Find the amount to be paid if Joseph borrowed a sum of $5700 at 6% simple interest for 7 years.

Correct Answer  $8094

Solution & Explanation

Solution

Given,

Principal (P) = $5700

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) = $5700 × 6% × 7

= $5700 ×⁶/₁₀₀ × 7

= ^{5700 × 6 × 7}/₁₀₀

= ^{34200 × 7}/₁₀₀

= ²³⁹⁴⁰⁰/₁₀₀

= $2394

Thus, Simple Interest = $2394

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 = $5700 + $2394

= $8094

Thus, Amount to be paid = $8094 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 = $5700

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

And, Time (t) = 7 years

Thus, Amount (A)

= $5700 + ($5700 × 6% × 7)

= $5700 + ($5700 ×⁶/₁₀₀ × 7)

= $5700 + (^{5700 × 6 × 7}/₁₀₀)

= $5700 + (^{34200 × 7}/₁₀₀)

= $5700 + (²³⁹⁴⁰⁰/₁₀₀)

= $5700 + $2394 = $8094

Thus, Amount (A) to be paid = $8094 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 $5700, the simple interest in 1 year

= ⁶/₁₀₀ × 5700

= ^{6 × 5700}/₁₀₀

= ³⁴²⁰⁰/₁₀₀ = $342

Thus, simple interest for 1 year = $342

Therefore, simple interest for 7 years

= Simple interest for 1 year × 7

= $342 × 7 = $2394

Thus, Simple Interest (SI) = $2394

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5700 + $2394

= $8094

Thus, Amount to be paid = $8094 Answer

Similar Questions

(1) Find the amount to be paid if Mary borrowed a sum of $5050 at 6% simple interest for 8 years.

(2) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 4% simple interest for 3 years.

(3) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 4% simple interest.

(4) How much loan did Stephanie borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9060 to clear it?

(5) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 2% simple interest?

(6) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6468 to clear the loan, then find the time period of the loan.

(7) Calculate the amount due if Linda borrowed a sum of $3350 at 2% simple interest for 3 years.

(8) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 9% simple interest?

(9) In how much time a principal of $3150 will amount to $3622.5 at a simple interest of 5% per annum?

(10) What amount does William have to pay after 5 years if he takes a loan of $3500 at 2% simple interest?