Simple Interest
Math MCQs

Question :    Find the amount to be paid if Joseph borrowed a sum of $5700 at 6% simple interest for 8 years.

Correct Answer  $8436

Solution & Explanation

Solution

Given,

Principal (P) = $5700

Rate of Simple Interest (SI) = 6%

Time (t) = 8 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% × 8

= $5700 ×⁶/₁₀₀ × 8

= ^{5700 × 6 × 8}/₁₀₀

= ^{34200 × 8}/₁₀₀

= ²⁷³⁶⁰⁰/₁₀₀

= $2736

Thus, Simple Interest = $2736

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 + $2736

= $8436

Thus, Amount to be paid = $8436 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) = 8 years

Thus, Amount (A)

= $5700 + ($5700 × 6% × 8)

= $5700 + ($5700 ×⁶/₁₀₀ × 8)

= $5700 + (^{5700 × 6 × 8}/₁₀₀)

= $5700 + (^{34200 × 8}/₁₀₀)

= $5700 + (²⁷³⁶⁰⁰/₁₀₀)

= $5700 + $2736 = $8436

Thus, Amount (A) to be paid = $8436 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 8 years

= Simple interest for 1 year × 8

= $342 × 8 = $2736

Thus, Simple Interest (SI) = $2736

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5700 + $2736

= $8436

Thus, Amount to be paid = $8436 Answer

Similar Questions

(1) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $8008 to clear the loan, then find the time period of the loan.

(2) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 9% simple interest?

(3) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 10% simple interest?

(4) How much loan did Laura borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8635 to clear it?

(5) Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $7335 to clear the loan, then find the time period of the loan.

(6) How much loan did Paul borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7370 to clear it?

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

(8) Sarah took a loan of $5700 at the rate of 10% simple interest per annum. If he paid an amount of $9690 to clear the loan, then find the time period of the loan.

(9) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 4% simple interest.

(10) What amount will be due after 2 years if James borrowed a sum of $3000 at a 9% simple interest?