Simple Interest
Math MCQs

Question :    In how much time a principal of $3050 will amount to $3416 at a simple interest of 4% per annum?

Correct Answer  3

Solution & Explanation

Solution

Given,

Principal (P) = $3050

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

Amount (A) = $3416

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 = $3416 – $3050 = $366

Thus, Simple Interest = $366

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 × 366}/_{3050 × 4}

= ³⁶⁶⁰⁰/₁₂₂₀₀

= 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) = $3050

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

Simple Interest = $366 (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 $3050

= ⁴/₁₀₀ × 3050

= ^{4 × 3050}/₁₀₀

= ¹²²⁰⁰/₁₀₀ = 122

Thus, simple Interest for 1 year = $122

Now,

∵ If the simple Interest is $122, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₁₂₂ years

∴ If the simple Interest is $366, then the time = ¹/₁₂₂ × 366 years

= ^{1 × 366}/₁₂₂ years

= ³⁶⁶/₁₂₂ = 3 years

Thus, time (T) = 3 years Answer

Similar Questions

(1) Daniel took a loan of $6200 at the rate of 7% simple interest per annum. If he paid an amount of $9238 to clear the loan, then find the time period of the loan.

(2) Find the amount to be paid if Michael borrowed a sum of $5300 at 5% simple interest for 8 years.

(3) In how much time a principal of $3150 will amount to $3780 at a simple interest of 4% per annum?

(4) John took a loan of $4400 at the rate of 7% simple interest per annum. If he paid an amount of $7480 to clear the loan, then find the time period of the loan.

(5) Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $10200 to clear the loan, then find the time period of the loan.

(6) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $12600 to clear the loan, then find the time period of the loan.

(7) Calculate the amount due if Patricia borrowed a sum of $3150 at 2% simple interest for 3 years.

(8) Michael took a loan of $4600 at the rate of 8% simple interest per annum. If he paid an amount of $6808 to clear the loan, then find the time period of the loan.

(9) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 5% simple interest?

(10) Christopher had to pay $4480 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.