Simple Interest
Math MCQs

Question :    In how much time a principal of $3200 will amount to $3520 at a simple interest of 5% per annum?

Correct Answer  2

Solution & Explanation

Solution

Given,

Principal (P) = $3200

Rate of Simple Interest (R) = 5% per annum

Amount (A) = $3520

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 = $3520 – $3200 = $320

Thus, Simple Interest = $320

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 × 320}/_{3200 × 5}

= ³²⁰⁰⁰/₁₆₀₀₀

= 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) = $3200

Rate of Simple Interest (R) = 5% per annum

Simple Interest = $320 (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 = 5% of Principal

= 5% of $3200

= ⁵/₁₀₀ × 3200

= ^{5 × 3200}/₁₀₀

= ¹⁶⁰⁰⁰/₁₀₀ = 160

Thus, simple Interest for 1 year = $160

Now,

∵ If the simple Interest is $160, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₁₆₀ years

∴ If the simple Interest is $320, then the time = ¹/₁₆₀ × 320 years

= ^{1 × 320}/₁₆₀ years

= ³²⁰/₁₆₀ = 2 years

Thus, time (T) = 2 years Answer

Similar Questions

(1) If Steven paid $5152 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(2) How much loan did Kenneth borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8050 to clear it?

(3) Sarah took a loan of $5700 at the rate of 6% simple interest per annum. If he paid an amount of $8778 to clear the loan, then find the time period of the loan.

(4) How much loan did Ashley borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7532.5 to clear it?

(5) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 5% simple interest?

(6) In how much time a principal of $3100 will amount to $3224 at a simple interest of 2% per annum?

(7) Calculate the amount due if Robert borrowed a sum of $3100 at 10% simple interest for 4 years.

(8) Find the amount to be paid if Mary borrowed a sum of $5050 at 9% simple interest for 8 years.

(9) If Richard paid $4032 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(10) Find the amount to be paid if Thomas borrowed a sum of $5800 at 4% simple interest for 7 years.