Simple Interest
Math MCQs

Question :    Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 2% simple interest.

Correct Answer  $7080

Solution & Explanation

Solution

Given,

Principal (P) = $5900

Rate of Simple Interest (SI) = 2%

Time (t) = 10 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) = $5900 × 2% × 10

= $5900 ײ/₁₀₀ × 10

= ^{5900 × 2 × 10}/₁₀₀

= ^{11800 × 10}/₁₀₀

= ¹¹⁸⁰⁰⁰/₁₀₀

= $1180

Thus, Simple Interest = $1180

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 = $5900 + $1180

= $7080

Thus, Amount to be paid = $7080 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 = $5900

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

And, Time (t) = 10 years

Thus, Amount (A)

= $5900 + ($5900 × 2% × 10)

= $5900 + ($5900 ײ/₁₀₀ × 10)

= $5900 + (^{5900 × 2 × 10}/₁₀₀)

= $5900 + (^{11800 × 10}/₁₀₀)

= $5900 + (¹¹⁸⁰⁰⁰/₁₀₀)

= $5900 + $1180 = $7080

Thus, Amount (A) to be paid = $7080 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 $5900, the simple interest in 1 year

= ²/₁₀₀ × 5900

= ^{2 × 5900}/₁₀₀

= ¹¹⁸⁰⁰/₁₀₀ = $118

Thus, simple interest for 1 year = $118

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $118 × 10 = $1180

Thus, Simple Interest (SI) = $1180

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5900 + $1180

= $7080

Thus, Amount to be paid = $7080 Answer

Similar Questions

(1) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 6% simple interest.

(2) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $7488 to clear the loan, then find the time period of the loan.

(3) In how much time a principal of $3050 will amount to $3507.5 at a simple interest of 5% per annum?

(4) Find the amount to be paid if Christopher borrowed a sum of $6000 at 2% simple interest for 7 years.

(5) Jessica had to pay $4312.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(6) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 5% simple interest.

(7) If Andrew paid $5760 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(8) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $9086 to clear the loan, then find the time period of the loan.

(9) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 7% simple interest.

(10) Linda took a loan of $4700 at the rate of 9% simple interest per annum. If he paid an amount of $8084 to clear the loan, then find the time period of the loan.