Simple Interest
Math MCQs

Question :  ( 1 of 10 )  Find the amount to be paid if John borrowed a sum of $5200 at 2% simple interest for 8 years.

Correct Answer  $6032

Solution & Explanation

Solution

Given,

Principal (P) = $5200

Rate of Simple Interest (SI) = 2%

Time (t) = 8 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) = $5200 × 2% × 8

= $5200 ײ/₁₀₀ × 8

= ^{5200 × 2 × 8}/₁₀₀

= ^{10400 × 8}/₁₀₀

= ⁸³²⁰⁰/₁₀₀

= $832

Thus, Simple Interest = $832

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 = $5200 + $832

= $6032

Thus, Amount to be paid = $6032 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 = $5200

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

And, Time (t) = 8 years

Thus, Amount (A)

= $5200 + ($5200 × 2% × 8)

= $5200 + ($5200 ײ/₁₀₀ × 8)

= $5200 + (^{5200 × 2 × 8}/₁₀₀)

= $5200 + (^{10400 × 8}/₁₀₀)

= $5200 + (⁸³²⁰⁰/₁₀₀)

= $5200 + $832 = $6032

Thus, Amount (A) to be paid = $6032 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 $5200, the simple interest in 1 year

= ²/₁₀₀ × 5200

= ^{2 × 5200}/₁₀₀

= ¹⁰⁴⁰⁰/₁₀₀ = $104

Thus, simple interest for 1 year = $104

Therefore, simple interest for 8 years

= Simple interest for 1 year × 8

= $104 × 8 = $832

Thus, Simple Interest (SI) = $832

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5200 + $832

= $6032

Thus, Amount to be paid = $6032 Answer

Similar Questions

(1) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 6% simple interest.

(2) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 9% simple interest.

(3) How much loan did Karen borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6545 to clear it?

(4) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 2% simple interest?

(5) Calculate the amount due after 10 years if James borrowed a sum of $5000 at a rate of 8% simple interest.

(6) Find the amount to be paid if Michael borrowed a sum of $5300 at 6% simple interest for 8 years.

(7) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $8550 to clear the loan, then find the time period of the loan.

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

(9) What amount does James have to pay after 5 years if he takes a loan of $3000 at 4% simple interest?

(10) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $12127 to clear the loan, then find the time period of the loan.