Simple Interest
Math MCQs

Question :    Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 8% simple interest.

Correct Answer  $10260

Solution & Explanation

Solution

Given,

Principal (P) = $5700

Rate of Simple Interest (SI) = 8%

Time (t) = 10 years

Thus, Amount (A) = ?

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

Thus, here 8% simple interest means, Rate of Simple Interest (SI) is 8% 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 × 8% × 10

= $5700 ×⁸/₁₀₀ × 10

= ^{5700 × 8 × 10}/₁₀₀

= ^{45600 × 10}/₁₀₀

= ⁴⁵⁶⁰⁰⁰/₁₀₀

= $4560

Thus, Simple Interest = $4560

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 + $4560

= $10260

Thus, Amount to be paid = $10260 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) = 8%

And, Time (t) = 10 years

Thus, Amount (A)

= $5700 + ($5700 × 8% × 10)

= $5700 + ($5700 ×⁸/₁₀₀ × 10)

= $5700 + (^{5700 × 8 × 10}/₁₀₀)

= $5700 + (^{45600 × 10}/₁₀₀)

= $5700 + (⁴⁵⁶⁰⁰⁰/₁₀₀)

= $5700 + $4560 = $10260

Thus, Amount (A) to be paid = $10260 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 8%

This, means, $8 per $100 per year

∵ For $100, the simple interest for 1 year = $8

∴ For $1, the simple interest for 1 year = ⁸/₁₀₀

∴ For $5700, the simple interest in 1 year

= ⁸/₁₀₀ × 5700

= ^{8 × 5700}/₁₀₀

= ⁴⁵⁶⁰⁰/₁₀₀ = $456

Thus, simple interest for 1 year = $456

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $456 × 10 = $4560

Thus, Simple Interest (SI) = $4560

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5700 + $4560

= $10260

Thus, Amount to be paid = $10260 Answer

Similar Questions

(1) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $10880 to clear the loan, then find the time period of the loan.

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

(3) Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $9548 to clear the loan, then find the time period of the loan.

(4) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $11340 to clear the loan, then find the time period of the loan.

(5) Find the amount to be paid if Richard borrowed a sum of $5600 at 2% simple interest for 7 years.

(6) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 10% simple interest?

(7) Christopher took a loan of $6000 at the rate of 6% simple interest per annum. If he paid an amount of $9600 to clear the loan, then find the time period of the loan.

(8) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 4% simple interest?

(9) Find the amount to be paid if Susan borrowed a sum of $5650 at 6% simple interest for 8 years.

(10) Linda took a loan of $4700 at the rate of 8% simple interest per annum. If he paid an amount of $8084 to clear the loan, then find the time period of the loan.