Simple Interest
Math MCQs

Question :    In how much time a principal of $3000 will amount to $3360 at a simple interest of 3% per annum?

Correct Answer  4

Solution & Explanation

Solution

Given,

Principal (P) = $3000

Rate of Simple Interest (R) = 3% 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 × 3}

= ³⁶⁰⁰⁰/₉₀₀₀

= 4 years (using formula)

Thus, Time (T) = 4 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) = 3% 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 = 3% of Principal

= 3% of $3000

= ³/₁₀₀ × 3000

= ^{3 × 3000}/₁₀₀

= ⁹⁰⁰⁰/₁₀₀ = 90

Thus, simple Interest for 1 year = $90

Now,

∵ If the simple Interest is $90, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₉₀ years

∴ If the simple Interest is $360, then the time = ¹/₉₀ × 360 years

= ^{1 × 360}/₉₀ years

= ³⁶⁰/₉₀ = 4 years

Thus, time (T) = 4 years Answer

Similar Questions

(1) Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $7952 to clear the loan, then find the time period of the loan.

(2) Sarah took a loan of $5700 at the rate of 9% simple interest per annum. If he paid an amount of $9291 to clear the loan, then find the time period of the loan.

(3) If Michael paid $3564 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(4) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 9% simple interest?

(5) What amount does David have to pay after 5 years if he takes a loan of $3400 at 7% simple interest?

(6) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 4% simple interest.

(7) Find the amount to be paid if Linda borrowed a sum of $5350 at 6% simple interest for 7 years.

(8) Calculate the amount due if James borrowed a sum of $3000 at 8% simple interest for 3 years.

(9) John took a loan of $4400 at the rate of 9% simple interest per annum. If he paid an amount of $8360 to clear the loan, then find the time period of the loan.

(10) Michelle had to pay $5544 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.