Simple Interest
Math MCQs

Question :    Patricia took a loan of $4300 at the rate of 7% simple interest per annum. If he paid an amount of $6106 to clear the loan, then find the time period of the loan.

Correct Answer  6

Solution & Explanation

Solution

Given,

Principal (P) = $4300

Rate of Simple Interest (R) = 7% per annum

Amount (A) = $6106

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 = $6106 – $4300 = $1806

Thus, Simple Interest = $1806

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 × 1806}/_{4300 × 7}

= ¹⁸⁰⁶⁰⁰/₃₀₁₀₀

= 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) = $4300

Rate of Simple Interest (R) = 7% per annum

Simple Interest = $1806 (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 = 7% of Principal

= 7% of $4300

= ⁷/₁₀₀ × 4300

= ^{7 × 4300}/₁₀₀

= ³⁰¹⁰⁰/₁₀₀ = 301

Thus, simple Interest for 1 year = $301

Now,

∵ If the simple Interest is $301, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₀₁ years

∴ If the simple Interest is $1806, then the time = ¹/₃₀₁ × 1806 years

= ^{1 × 1806}/₃₀₁ years

= ¹⁸⁰⁶/₃₀₁ = 6 years

Thus, time (T) = 6 years Answer

Similar Questions

(1) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 4% simple interest?

(2) How much loan did Christopher borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7200 to clear it?

(3) If Richard paid $4176 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(4) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $7052 to clear the loan, then find the time period of the loan.

(5) Find the amount to be paid if Joseph borrowed a sum of $5700 at 6% simple interest for 7 years.

(6) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 9% simple interest?

(7) Find the amount to be paid if Richard borrowed a sum of $5600 at 8% simple interest for 8 years.

(8) Susan took a loan of $5300 at the rate of 10% simple interest per annum. If he paid an amount of $8480 to clear the loan, then find the time period of the loan.

(9) Calculate the amount due if Michael borrowed a sum of $3300 at 5% simple interest for 3 years.

(10) If Susan paid $4088 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.