Simple Interest
Math MCQs

Question :    In how much time a principal of $3000 will amount to $3300 at a simple interest of 2% per annum?

Correct Answer  5

Solution & Explanation

Solution

Given,

Principal (P) = $3000

Rate of Simple Interest (R) = 2% per annum

Amount (A) = $3300

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 = $3300 – $3000 = $300

Thus, Simple Interest = $300

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 × 300}/_{3000 × 2}

= ³⁰⁰⁰⁰/₆₀₀₀

= 5 years (using formula)

Thus, Time (T) = 5 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) = 2% per annum

Simple Interest = $300 (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 = 2% of Principal

= 2% of $3000

= ²/₁₀₀ × 3000

= ^{2 × 3000}/₁₀₀

= ⁶⁰⁰⁰/₁₀₀ = 60

Thus, simple Interest for 1 year = $60

Now,

∵ If the simple Interest is $60, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₀ years

∴ If the simple Interest is $300, then the time = ¹/₆₀ × 300 years

= ^{1 × 300}/₆₀ years

= ³⁰⁰/₆₀ = 5 years

Thus, time (T) = 5 years Answer

Similar Questions

(1) If Richard borrowed $3600 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(2) Find the amount to be paid if Charles borrowed a sum of $5900 at 5% simple interest for 8 years.

(3) What amount will be due after 2 years if Andrew borrowed a sum of $3900 at a 7% simple interest?

(4) Mary took a loan of $4100 at the rate of 7% simple interest per annum. If he paid an amount of $5822 to clear the loan, then find the time period of the loan.

(5) If Kimberly paid $5394 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(6) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 8% simple interest.

(7) Betty took a loan of $6500 at the rate of 8% simple interest per annum. If he paid an amount of $10140 to clear the loan, then find the time period of the loan.

(8) What amount will be due after 2 years if Michael borrowed a sum of $3150 at a 5% simple interest?

(9) Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $9372 to clear the loan, then find the time period of the loan.

(10) How much loan did Elizabeth borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6267.5 to clear it?