Simple Interest
Math MCQs

Question :    In how much time a principal of $3000 will amount to $3360 at a simple interest of 4% per annum?

Correct Answer  3

Solution & Explanation

Solution

Given,

Principal (P) = $3000

Rate of Simple Interest (R) = 4% per annum

Amount (A) = $3360

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 = $3360 – $3000 = $360

Thus, Simple Interest = $360

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 × 360}/_{3000 × 4}

= ³⁶⁰⁰⁰/₁₂₀₀₀

= 3 years (using formula)

Thus, Time (T) = 3 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) = $3000

Rate of Simple Interest (R) = 4% per annum

Simple Interest = $360 (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 = 4% of Principal

= 4% of $3000

= ⁴/₁₀₀ × 3000

= ^{4 × 3000}/₁₀₀

= ¹²⁰⁰⁰/₁₀₀ = 120

Thus, simple Interest for 1 year = $120

Now,

∵ If the simple Interest is $120, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₁₂₀ years

∴ If the simple Interest is $360, then the time = ¹/₁₂₀ × 360 years

= ^{1 × 360}/₁₂₀ years

= ³⁶⁰/₁₂₀ = 3 years

Thus, time (T) = 3 years Answer

Similar Questions

(1) Find the amount to be paid if William borrowed a sum of $5500 at 6% simple interest for 8 years.

(2) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 6% simple interest?

(3) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 3% simple interest for 7 years.

(4) Joseph had to pay $4255 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(5) Kenneth had to pay $5750 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(6) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $7650 to clear the loan, then find the time period of the loan.

(7) James had to pay $3450 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(8) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 10% simple interest?

(9) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 3% simple interest.

(10) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 10% simple interest?