Simple Interest
Math MCQs

Question :    In how much time a principal of $3150 will amount to $3276 at a simple interest of 2% per annum?

Correct Answer  2

Solution & Explanation

Solution

Given,

Principal (P) = $3150

Rate of Simple Interest (R) = 2% per annum

Amount (A) = $3276

Thus, time (T) = ?

Method (1) Using Formula

Calculation of Simple Interest, when Principal and Amount are given

Formual to Calculate Simple Interest when Principal and Amount are given

We know that, Amount (A) = Principal (P) + Simple Interest (SI)

⇒ Simple Interest (SI) = Amount – Principal

⇒ SI = $3276 – $3150 = $126

Thus, Simple Interest = $126

Calculation of the Time using forumula when Amount, Simple Interest and Principal are known

Formula to find the Time (T)

Time (T) = ^{100 × Simple Interest}/_{Principal × Rate of Interest}

⇒ T = ^{100 × SI}/_{P × R}

Thus, Time (T) = ^{100 × 126}/_{3150 × 2}

= ¹²⁶⁰⁰/₆₃₀₀

= 2 years (using formula)

Thus, Time (T) = 2 years (from time taken before calculation)Answer

Calculation of the Time using Unitary Method when Amount, Simple Interest and Principal are known

Here, we have

Principal (P) = $3150

Rate of Simple Interest (R) = 2% per annum

Simple Interest = $126 (As calculated above by subtracting Principal from the Amount given)

We know that, interest is calculated on the basis of the Principal.

This means Simple Interest for 1 year = Rate of simple interest × Principal

Thus, Simple Interest for 1 year = 2% of Principal

= 2% of $3150

= ²/₁₀₀ × 3150

= ^{2 × 3150}/₁₀₀

= ⁶³⁰⁰/₁₀₀ = 63

Thus, simple Interest for 1 year = $63

Now,

∵ If the simple Interest is $63, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₃ years

∴ If the simple Interest is $126, then the time = ¹/₆₃ × 126 years

= ^{1 × 126}/₆₃ years

= ¹²⁶/₆₃ = 2 years

Thus, time (T) = 2 years Answer

Similar Questions

(1) Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $6705 to clear the loan, then find the time period of the loan.

(2) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 4% simple interest?

(3) How much loan did Michelle borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7992.5 to clear it?

(4) What amount does William have to pay after 6 years if he takes a loan of $3500 at 6% simple interest?

(5) Margaret took a loan of $6700 at the rate of 10% simple interest per annum. If he paid an amount of $10720 to clear the loan, then find the time period of the loan.

(6) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 5% simple interest?

(7) Find the amount to be paid if William borrowed a sum of $5500 at 2% simple interest for 7 years.

(8) Calculate the amount due if Richard borrowed a sum of $3600 at 7% simple interest for 3 years.

(9) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 4% simple interest?

(10) Sandra took a loan of $6900 at the rate of 8% simple interest per annum. If he paid an amount of $10212 to clear the loan, then find the time period of the loan.