Simple Interest
Math MCQs

Question :    Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 9% simple interest.

Correct Answer  $11020

Solution & Explanation

Solution

Given,

Principal (P) = $5800

Rate of Simple Interest (SI) = 9%

Time (t) = 10 years

Thus, Amount (A) = ?

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

Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $5800 × 9% × 10

= $5800 ×⁹/₁₀₀ × 10

= ^{5800 × 9 × 10}/₁₀₀

= ^{52200 × 10}/₁₀₀

= ⁵²²⁰⁰⁰/₁₀₀

= $5220

Thus, Simple Interest = $5220

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 = $5800 + $5220

= $11020

Thus, Amount to be paid = $11020 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 = $5800

Rate of Simple Interest (SI) or (R) = 9%

And, Time (t) = 10 years

Thus, Amount (A)

= $5800 + ($5800 × 9% × 10)

= $5800 + ($5800 ×⁹/₁₀₀ × 10)

= $5800 + (^{5800 × 9 × 10}/₁₀₀)

= $5800 + (^{52200 × 10}/₁₀₀)

= $5800 + (⁵²²⁰⁰⁰/₁₀₀)

= $5800 + $5220 = $11020

Thus, Amount (A) to be paid = $11020 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 9%

This, means, $9 per $100 per year

∵ For $100, the simple interest for 1 year = $9

∴ For $1, the simple interest for 1 year = ⁹/₁₀₀

∴ For $5800, the simple interest in 1 year

= ⁹/₁₀₀ × 5800

= ^{9 × 5800}/₁₀₀

= ⁵²²⁰⁰/₁₀₀ = $522

Thus, simple interest for 1 year = $522

Therefore, simple interest for 10 years

= Simple interest for 1 year × 10

= $522 × 10 = $5220

Thus, Simple Interest (SI) = $5220

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5800 + $5220

= $11020

Thus, Amount to be paid = $11020 Answer

Similar Questions

(1) Richard took a loan of $5200 at the rate of 10% simple interest per annum. If he paid an amount of $9880 to clear the loan, then find the time period of the loan.

(2) What amount does Karen have to pay after 5 years if he takes a loan of $3950 at 3% simple interest?

(3) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 10% simple interest.

(4) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 4% simple interest?

(5) What amount will be due after 2 years if James borrowed a sum of $3000 at a 4% simple interest?

(6) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 5% simple interest?

(7) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 7% simple interest?

(8) Calculate the amount due if Susan borrowed a sum of $3650 at 9% simple interest for 3 years.

(9) Joseph took a loan of $5400 at the rate of 7% simple interest per annum. If he paid an amount of $8046 to clear the loan, then find the time period of the loan.

(10) Matthew took a loan of $6400 at the rate of 10% simple interest per annum. If he paid an amount of $12160 to clear the loan, then find the time period of the loan.