Simple Interest
Math MCQs

Question :    In how much time a principal of $3150 will amount to $3780 at a simple interest of 5% per annum?

Correct Answer  4

Solution & Explanation

Solution

Given,

Principal (P) = $3150

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

Amount (A) = $3780

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 = $3780 – $3150 = $630

Thus, Simple Interest = $630

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 × 630}/_{3150 × 5}

= ⁶³⁰⁰⁰/₁₅₇₅₀

= 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) = $3150

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

Simple Interest = $630 (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 $3150

= ⁵/₁₀₀ × 3150

= ^{5 × 3150}/₁₀₀

= ¹⁵⁷⁵⁰/₁₀₀ = 157.5

Thus, simple Interest for 1 year = $157.5

Now,

∵ If the simple Interest is $157.5, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/_157.5 years

∴ If the simple Interest is $630, then the time = ¹/_157.5 × 630 years

= ^{1 × 630}/_157.5 years

= ⁶³⁰/_157.5 = 4 years

Thus, time (T) = 4 years Answer

Similar Questions

(1) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 5% simple interest?

(2) Jessica took a loan of $5500 at the rate of 8% simple interest per annum. If he paid an amount of $8580 to clear the loan, then find the time period of the loan.

(3) William took a loan of $5000 at the rate of 7% simple interest per annum. If he paid an amount of $7450 to clear the loan, then find the time period of the loan.

(4) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 6% simple interest?

(5) Find the amount to be paid if John borrowed a sum of $5200 at 9% simple interest for 8 years.

(6) How much loan did William borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6325 to clear it?

(7) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 8% simple interest.

(8) Donald took a loan of $7000 at the rate of 10% simple interest per annum. If he paid an amount of $14000 to clear the loan, then find the time period of the loan.

(9) How much loan did Donna borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7877.5 to clear it?

(10) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 8% simple interest?