Simple Interest
Math MCQs

Question :  ( 1 of 10 )  Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 4% simple interest.

Correct Answer  $7490

Solution & Explanation

Solution

Given,

Principal (P) = $5350

Rate of Simple Interest (SI) = 4%

Time (t) = 10 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 4% simple interest means, Rate of Simple Interest (SI) is 4% 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) = $5350 × 4% × 10

= $5350 ×⁴/₁₀₀ × 10

= ^{5350 × 4 × 10}/₁₀₀

= ^{21400 × 10}/₁₀₀

= ²¹⁴⁰⁰⁰/₁₀₀

= $2140

Thus, Simple Interest = $2140

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 = $5350 + $2140

= $7490

Thus, Amount to be paid = $7490 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 = $5350

Rate of Simple Interest (SI) or (R) = 4%

And, Time (t) = 10 years

Thus, Amount (A)

= $5350 + ($5350 × 4% × 10)

= $5350 + ($5350 ×⁴/₁₀₀ × 10)

= $5350 + (^{5350 × 4 × 10}/₁₀₀)

= $5350 + (^{21400 × 10}/₁₀₀)

= $5350 + (²¹⁴⁰⁰⁰/₁₀₀)

= $5350 + $2140 = $7490

Thus, Amount (A) to be paid = $7490 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 4%

This, means, $4 per $100 per year

∵ For $100, the simple interest for 1 year = $4

∴ For $1, the simple interest for 1 year = ⁴/₁₀₀

∴ For $5350, the simple interest in 1 year

= ⁴/₁₀₀ × 5350

= ^{4 × 5350}/₁₀₀

= ²¹⁴⁰⁰/₁₀₀ = $214

Thus, simple interest for 1 year = $214

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $214 × 10 = $2140

Thus, Simple Interest (SI) = $2140

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5350 + $2140

= $7490

Thus, Amount to be paid = $7490 Answer

Similar Questions

(1) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 5% simple interest?

(2) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 10% simple interest?

(3) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 8% simple interest.

(4) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 10% simple interest?

(5) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 3% simple interest?

(6) If Donald paid $5040 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(7) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 8% simple interest.

(8) Anthony took a loan of $6600 at the rate of 9% simple interest per annum. If he paid an amount of $11352 to clear the loan, then find the time period of the loan.

(9) Susan took a loan of $5300 at the rate of 6% simple interest per annum. If he paid an amount of $8480 to clear the loan, then find the time period of the loan.

(10) What amount will be due after 2 years if John borrowed a sum of $3100 at a 6% simple interest?