Simple Interest
Math MCQs

Question :  ( 1 of 10 )  In how much time a principal of $3100 will amount to $3720 at a simple interest of 5% per annum?

Correct Answer  4

Solution & Explanation

Solution

Given,

Principal (P) = $3100

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

Amount (A) = $3720

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 = $3720 – $3100 = $620

Thus, Simple Interest = $620

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 × 620}/_{3100 × 5}

= ⁶²⁰⁰⁰/₁₅₅₀₀

= 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) = $3100

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

Simple Interest = $620 (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 $3100

= ⁵/₁₀₀ × 3100

= ^{5 × 3100}/₁₀₀

= ¹⁵⁵⁰⁰/₁₀₀ = 155

Thus, simple Interest for 1 year = $155

Now,

∵ If the simple Interest is $155, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₁₅₅ years

∴ If the simple Interest is $620, then the time = ¹/₁₅₅ × 620 years

= ^{1 × 620}/₁₅₅ years

= ⁶²⁰/₁₅₅ = 4 years

Thus, time (T) = 4 years Answer

Similar Questions

(1) What amount does David have to pay after 5 years if he takes a loan of $3400 at 4% simple interest?

(2) Calculate the amount due if Charles borrowed a sum of $3900 at 3% simple interest for 3 years.

(3) Calculate the amount due if James borrowed a sum of $3000 at 2% simple interest for 4 years.

(4) If Kenneth paid $5600 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(5) Find the amount to be paid if Mary borrowed a sum of $5050 at 2% simple interest for 8 years.

(6) Find the amount to be paid if Charles borrowed a sum of $5900 at 2% simple interest for 7 years.

(7) If Joseph paid $3996 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(8) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 4% simple interest for 7 years.

(9) Calculate the amount due if Sarah borrowed a sum of $3850 at 9% simple interest for 4 years.

(10) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $8740 to clear the loan, then find the time period of the loan.