Simple Interest
Math MCQs

Question :    In how much time a principal of $3200 will amount to $3584 at a simple interest of 4% per annum?

Correct Answer  3

Solution & Explanation

Solution

Given,

Principal (P) = $3200

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

Amount (A) = $3584

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 = $3584 – $3200 = $384

Thus, Simple Interest = $384

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 × 384}/_{3200 × 4}

= ³⁸⁴⁰⁰/₁₂₈₀₀

= 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) = $3200

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

Simple Interest = $384 (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 $3200

= ⁴/₁₀₀ × 3200

= ^{4 × 3200}/₁₀₀

= ¹²⁸⁰⁰/₁₀₀ = 128

Thus, simple Interest for 1 year = $128

Now,

∵ If the simple Interest is $128, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₁₂₈ years

∴ If the simple Interest is $384, then the time = ¹/₁₂₈ × 384 years

= ^{1 × 384}/₁₂₈ years

= ³⁸⁴/₁₂₈ = 3 years

Thus, time (T) = 3 years Answer

Similar Questions

(1) How much loan did Charles borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7080 to clear it?

(2) How much loan did Stephanie borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8305 to clear it?

(3) Mark took a loan of $6800 at the rate of 10% simple interest per annum. If he paid an amount of $10880 to clear the loan, then find the time period of the loan.

(4) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 8% simple interest?

(5) Find the amount to be paid if Jessica borrowed a sum of $5750 at 2% simple interest for 8 years.

(6) Richard took a loan of $5200 at the rate of 9% simple interest per annum. If he paid an amount of $8008 to clear the loan, then find the time period of the loan.

(7) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $9540 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due if Michael borrowed a sum of $3300 at 8% simple interest for 3 years.

(9) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $9440 to clear the loan, then find the time period of the loan.

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