Simple Interest
Math MCQs

Question :    Mark took a loan of $6800 at the rate of 9% simple interest per annum. If he paid an amount of $10472 to clear the loan, then find the time period of the loan.

Correct Answer  6

Solution & Explanation

Solution

Given,

Principal (P) = $6800

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

Amount (A) = $10472

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 = $10472 – $6800 = $3672

Thus, Simple Interest = $3672

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 × 3672}/_{6800 × 9}

= ³⁶⁷²⁰⁰/₆₁₂₀₀

= 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) = $6800

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

Simple Interest = $3672 (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 $6800

= ⁹/₁₀₀ × 6800

= ^{9 × 6800}/₁₀₀

= ⁶¹²⁰⁰/₁₀₀ = 612

Thus, simple Interest for 1 year = $612

Now,

∵ If the simple Interest is $612, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₁₂ years

∴ If the simple Interest is $3672, then the time = ¹/₆₁₂ × 3672 years

= ^{1 × 3672}/₆₁₂ years

= ³⁶⁷²/₆₁₂ = 6 years

Thus, time (T) = 6 years Answer

Similar Questions

(1) Calculate the amount due if Robert borrowed a sum of $3100 at 8% simple interest for 3 years.

(2) What amount does John have to pay after 5 years if he takes a loan of $3200 at 2% simple interest?

(3) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 2% simple interest.

(4) What amount does John have to pay after 6 years if he takes a loan of $3200 at 10% simple interest?

(5) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $7100 to clear the loan, then find the time period of the loan.

(6) Calculate the amount due if Linda borrowed a sum of $3350 at 3% simple interest for 4 years.

(7) Betty took a loan of $6500 at the rate of 6% simple interest per annum. If he paid an amount of $10010 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 2% simple interest for 3 years.

(9) Calculate the amount due if Richard borrowed a sum of $3600 at 6% simple interest for 3 years.

(10) William had to pay $3815 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.