Simple Interest
Math MCQs

Question :    John took a loan of $4400 at the rate of 9% simple interest per annum. If he paid an amount of $6776 to clear the loan, then find the time period of the loan.

Correct Answer  6

Solution & Explanation

Solution

Given,

Principal (P) = $4400

Rate of Simple Interest (R) = 9% per annum

Amount (A) = $6776

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 = $6776 – $4400 = $2376

Thus, Simple Interest = $2376

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 × 2376}/_{4400 × 9}

= ²³⁷⁶⁰⁰/₃₉₆₀₀

= 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) = $4400

Rate of Simple Interest (R) = 9% per annum

Simple Interest = $2376 (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 = 9% of Principal

= 9% of $4400

= ⁹/₁₀₀ × 4400

= ^{9 × 4400}/₁₀₀

= ³⁹⁶⁰⁰/₁₀₀ = 396

Thus, simple Interest for 1 year = $396

Now,

∵ If the simple Interest is $396, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₉₆ years

∴ If the simple Interest is $2376, then the time = ¹/₃₉₆ × 2376 years

= ^{1 × 2376}/₃₉₆ years

= ²³⁷⁶/₃₉₆ = 6 years

Thus, time (T) = 6 years Answer

Similar Questions

(1) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 10% simple interest?

(2) Calculate the amount due if Mary borrowed a sum of $3050 at 5% simple interest for 3 years.

(3) Mark had to pay $5060 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(4) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 3% simple interest.

(5) How much loan did Daniel borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6710 to clear it?

(6) Daniel took a loan of $6200 at the rate of 7% simple interest per annum. If he paid an amount of $9672 to clear the loan, then find the time period of the loan.

(7) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 9% simple interest?

(8) Find the amount to be paid if Linda borrowed a sum of $5350 at 3% simple interest for 7 years.

(9) Joshua had to pay $5635 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(10) 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.