Simple Interest
Math MCQs

Question :    Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $9176 to clear the loan, then find the time period of the loan.

Correct Answer  6

Solution & Explanation

Solution

Given,

Principal (P) = $6200

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

Amount (A) = $9176

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 = $9176 – $6200 = $2976

Thus, Simple Interest = $2976

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 × 2976}/_{6200 × 8}

= ²⁹⁷⁶⁰⁰/₄₉₆₀₀

= 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) = $6200

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

Simple Interest = $2976 (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 $6200

= ⁸/₁₀₀ × 6200

= ^{8 × 6200}/₁₀₀

= ⁴⁹⁶⁰⁰/₁₀₀ = 496

Thus, simple Interest for 1 year = $496

Now,

∵ If the simple Interest is $496, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₉₆ years

∴ If the simple Interest is $2976, then the time = ¹/₄₉₆ × 2976 years

= ^{1 × 2976}/₄₉₆ years

= ²⁹⁷⁶/₄₉₆ = 6 years

Thus, time (T) = 6 years Answer

Similar Questions

(1) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 2% simple interest?

(2) Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $9394 to clear the loan, then find the time period of the loan.

(3) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 5% simple interest.

(4) If Daniel paid $4756 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(5) Anthony took a loan of $6600 at the rate of 9% simple interest per annum. If he paid an amount of $10758 to clear the loan, then find the time period of the loan.

(6) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 4% simple interest?

(7) Michael took a loan of $4600 at the rate of 7% simple interest per annum. If he paid an amount of $6532 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 4% simple interest.

(9) How much loan did Paul borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7705 to clear it?

(10) Find the amount to be paid if John borrowed a sum of $5200 at 4% simple interest for 8 years.