Simple Interest
Math MCQs

Question :    Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $9089 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) = 7% per annum

Amount (A) = $9089

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 = $9089 – $6100 = $2989

Thus, Simple Interest = $2989

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 × 2989}/_{6100 × 7}

= ²⁹⁸⁹⁰⁰/₄₂₇₀₀

= 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) = 7% per annum

Simple Interest = $2989 (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 = 7% of Principal

= 7% of $6100

= ⁷/₁₀₀ × 6100

= ^{7 × 6100}/₁₀₀

= ⁴²⁷⁰⁰/₁₀₀ = 427

Thus, simple Interest for 1 year = $427

Now,

∵ If the simple Interest is $427, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₂₇ years

∴ If the simple Interest is $2989, then the time = ¹/₄₂₇ × 2989 years

= ^{1 × 2989}/₄₂₇ years

= ²⁹⁸⁹/₄₂₇ = 7 years

Thus, time (T) = 7 years Answer

Similar Questions

(1) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $11410 to clear the loan, then find the time period of the loan.

(2) Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $7344 to clear the loan, then find the time period of the loan.

(3) 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.

(4) If Nancy paid $4648 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(5) What amount does Karen have to pay after 5 years if he takes a loan of $3950 at 4% simple interest?

(6) Emily had to pay $5035 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(7) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $12670 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due if Joseph borrowed a sum of $3700 at 5% simple interest for 4 years.

(9) Calculate the amount due if Linda borrowed a sum of $3350 at 7% simple interest for 3 years.

(10) In how much time a principal of $3150 will amount to $3339 at a simple interest of 2% per annum?