Simple Interest
Math MCQs

Question :    Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 7% simple interest.

Correct Answer  $9010

Solution & Explanation

Solution

Given,

Principal (P) = $5300

Rate of Simple Interest (SI) = 7%

Time (t) = 10 years

Thus, Amount (A) = ?

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

Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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) = $5300 × 7% × 10

= $5300 ×⁷/₁₀₀ × 10

= ^{5300 × 7 × 10}/₁₀₀

= ^{37100 × 10}/₁₀₀

= ³⁷¹⁰⁰⁰/₁₀₀

= $3710

Thus, Simple Interest = $3710

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 = $5300 + $3710

= $9010

Thus, Amount to be paid = $9010 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 = $5300

Rate of Simple Interest (SI) or (R) = 7%

And, Time (t) = 10 years

Thus, Amount (A)

= $5300 + ($5300 × 7% × 10)

= $5300 + ($5300 ×⁷/₁₀₀ × 10)

= $5300 + (^{5300 × 7 × 10}/₁₀₀)

= $5300 + (^{37100 × 10}/₁₀₀)

= $5300 + (³⁷¹⁰⁰⁰/₁₀₀)

= $5300 + $3710 = $9010

Thus, Amount (A) to be paid = $9010 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 7%

This, means, $7 per $100 per year

∵ For $100, the simple interest for 1 year = $7

∴ For $1, the simple interest for 1 year = ⁷/₁₀₀

∴ For $5300, the simple interest in 1 year

= ⁷/₁₀₀ × 5300

= ^{7 × 5300}/₁₀₀

= ³⁷¹⁰⁰/₁₀₀ = $371

Thus, simple interest for 1 year = $371

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $371 × 10 = $3710

Thus, Simple Interest (SI) = $3710

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5300 + $3710

= $9010

Thus, Amount to be paid = $9010 Answer

Similar Questions

(1) Find the amount to be paid if James borrowed a sum of $5000 at 9% simple interest for 8 years.

(2) How much loan did Margaret borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7302.5 to clear it?

(3) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $7810 to clear the loan, then find the time period of the loan.

(4) How much loan did Deborah borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8567.5 to clear it?

(5) Mark took a loan of $6800 at the rate of 8% simple interest per annum. If he paid an amount of $12240 to clear the loan, then find the time period of the loan.

(6) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 10% simple interest?

(7) Anthony took a loan of $6600 at the rate of 10% simple interest per annum. If he paid an amount of $10560 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 8% simple interest.

(9) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 9% simple interest?

(10) How much loan did Jeffrey borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9750 to clear it?