Simple Interest
Math MCQs

Question :    David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $7104 to clear the loan, then find the time period of the loan.

Correct Answer  6

Solution & Explanation

Solution

Given,

Principal (P) = $4800

Rate of Simple Interest (R) = 8% per annum

Amount (A) = $7104

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 = $7104 – $4800 = $2304

Thus, Simple Interest = $2304

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 × 2304}/_{4800 × 8}

= ²³⁰⁴⁰⁰/₃₈₄₀₀

= 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) = $4800

Rate of Simple Interest (R) = 8% per annum

Simple Interest = $2304 (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 = 8% of Principal

= 8% of $4800

= ⁸/₁₀₀ × 4800

= ^{8 × 4800}/₁₀₀

= ³⁸⁴⁰⁰/₁₀₀ = 384

Thus, simple Interest for 1 year = $384

Now,

∵ If the simple Interest is $384, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₈₄ years

∴ If the simple Interest is $2304, then the time = ¹/₃₈₄ × 2304 years

= ^{1 × 2304}/₃₈₄ years

= ²³⁰⁴/₃₈₄ = 6 years

Thus, time (T) = 6 years Answer

Similar Questions

(1) 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.

(2) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 3% simple interest.

(3) Find the amount to be paid if Patricia borrowed a sum of $5150 at 10% simple interest for 8 years.

(4) If Emily paid $5700 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(5) Find the amount to be paid if John borrowed a sum of $5200 at 3% simple interest for 8 years.

(6) Patricia took a loan of $4300 at the rate of 7% simple interest per annum. If he paid an amount of $6708 to clear the loan, then find the time period of the loan.

(7) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 8% simple interest?

(8) How much loan did Andrew borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8500 to clear it?

(9) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 8% simple interest.

(10) If William paid $3920 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.