Simple Interest
Math MCQs

Question :    Margaret took a loan of $6700 at the rate of 6% simple interest per annum. If he paid an amount of $9112 to clear the loan, then find the time period of the loan.

Correct Answer  6

Solution & Explanation

Solution

Given,

Principal (P) = $6700

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

Amount (A) = $9112

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 = $9112 – $6700 = $2412

Thus, Simple Interest = $2412

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 × 2412}/_{6700 × 6}

= ²⁴¹²⁰⁰/₄₀₂₀₀

= 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) = $6700

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

Simple Interest = $2412 (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 $6700

= ⁶/₁₀₀ × 6700

= ^{6 × 6700}/₁₀₀

= ⁴⁰²⁰⁰/₁₀₀ = 402

Thus, simple Interest for 1 year = $402

Now,

∵ If the simple Interest is $402, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₀₂ years

∴ If the simple Interest is $2412, then the time = ¹/₄₀₂ × 2412 years

= ^{1 × 2412}/₄₀₂ years

= ²⁴¹²/₄₀₂ = 6 years

Thus, time (T) = 6 years Answer

Similar Questions

(1) Calculate the amount due if Joseph borrowed a sum of $3700 at 9% simple interest for 4 years.

(2) What amount will be due after 2 years if John borrowed a sum of $3100 at a 9% simple interest?

(3) Calculate the amount due if Mary borrowed a sum of $3050 at 6% simple interest for 4 years.

(4) Christopher took a loan of $6000 at the rate of 6% simple interest per annum. If he paid an amount of $9600 to clear the loan, then find the time period of the loan.

(5) Jessica took a loan of $5500 at the rate of 9% simple interest per annum. If he paid an amount of $10450 to clear the loan, then find the time period of the loan.

(6) Find the amount to be paid if Thomas borrowed a sum of $5800 at 6% simple interest for 8 years.

(7) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6300 to clear it?

(8) How much loan did Joshua borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8280 to clear it?

(9) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 4% simple interest?

(10) James took a loan of $4000 at the rate of 6% simple interest per annum. If he paid an amount of $5440 to clear the loan, then find the time period of the loan.