Simple Interest
Math MCQs

Question :    Lisa took a loan of $6100 at the rate of 6% simple interest per annum. If he paid an amount of $8662 to clear the loan, then find the time period of the loan.

Correct Answer  7

Solution & Explanation

Solution

Given,

Principal (P) = $6100

Rate of Simple Interest (R) = 6% per annum

Amount (A) = $8662

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 = $8662 – $6100 = $2562

Thus, Simple Interest = $2562

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 × 2562}/_{6100 × 6}

= ²⁵⁶²⁰⁰/₃₆₆₀₀

= 7 years (using formula)

Thus, Time (T) = 7 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) = $6100

Rate of Simple Interest (R) = 6% per annum

Simple Interest = $2562 (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 = 6% of Principal

= 6% of $6100

= ⁶/₁₀₀ × 6100

= ^{6 × 6100}/₁₀₀

= ³⁶⁶⁰⁰/₁₀₀ = 366

Thus, simple Interest for 1 year = $366

Now,

∵ If the simple Interest is $366, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₆₆ years

∴ If the simple Interest is $2562, then the time = ¹/₃₆₆ × 2562 years

= ^{1 × 2562}/₃₆₆ years

= ²⁵⁶²/₃₆₆ = 7 years

Thus, time (T) = 7 years Answer

Similar Questions

(1) Find the amount to be paid if William borrowed a sum of $5500 at 2% simple interest for 7 years.

(2) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 10% simple interest?

(3) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $10710 to clear the loan, then find the time period of the loan.

(4) 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.

(5) Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $12160 to clear the loan, then find the time period of the loan.

(6) What amount does James have to pay after 6 years if he takes a loan of $3000 at 2% simple interest?

(7) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $7740 to clear the loan, then find the time period of the loan.

(8) Christopher had to pay $4480 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.

(9) Find the amount to be paid if Michael borrowed a sum of $5300 at 6% simple interest for 7 years.

(10) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 9% simple interest for 7 years.