Simple Interest
Math MCQs

Question :    Nancy took a loan of $6300 at the rate of 6% simple interest per annum. If he paid an amount of $8568 to clear the loan, then find the time period of the loan.

Correct Answer  6

Solution & Explanation

Solution

Given,

Principal (P) = $6300

Rate of Simple Interest (R) = 6% per annum

Amount (A) = $8568

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 = $8568 – $6300 = $2268

Thus, Simple Interest = $2268

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 × 2268}/_{6300 × 6}

= ²²⁶⁸⁰⁰/₃₇₈₀₀

= 6 years (using formula)

Thus, Time (T) = 6 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) = $6300

Rate of Simple Interest (R) = 6% per annum

Simple Interest = $2268 (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 = 6% of Principal

= 6% of $6300

= ⁶/₁₀₀ × 6300

= ^{6 × 6300}/₁₀₀

= ³⁷⁸⁰⁰/₁₀₀ = 378

Thus, simple Interest for 1 year = $378

Now,

∵ If the simple Interest is $378, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₇₈ years

∴ If the simple Interest is $2268, then the time = ¹/₃₇₈ × 2268 years

= ^{1 × 2268}/₃₇₈ years

= ²²⁶⁸/₃₇₈ = 6 years

Thus, time (T) = 6 years Answer

Similar Questions

(1) Calculate the amount due after 9 years if Susan borrowed a sum of $5650 at a rate of 2% simple interest.

(2) Calculate the amount due if David borrowed a sum of $3400 at 6% simple interest for 4 years.

(3) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 5% simple interest for 8 years.

(4) Calculate the amount due if Jennifer borrowed a sum of $3250 at 9% simple interest for 4 years.

(5) William took a loan of $5000 at the rate of 7% simple interest per annum. If he paid an amount of $7100 to clear the loan, then find the time period of the loan.

(6) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 9% simple interest?

(7) Calculate the amount due if William borrowed a sum of $3500 at 9% simple interest for 4 years.

(8) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $8320 to clear the loan, then find the time period of the loan.

(9) Betty took a loan of $6500 at the rate of 10% simple interest per annum. If he paid an amount of $11050 to clear the loan, then find the time period of the loan.

(10) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $11160 to clear the loan, then find the time period of the loan.