Simple Interest
Math MCQs

Question :  ( 1 of 10 )  David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $7488 to clear the loan, then find the time period of the loan.

Correct Answer  7

Solution & Explanation

Solution

Given,

Principal (P) = $4800

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

Amount (A) = $7488

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 = $7488 – $4800 = $2688

Thus, Simple Interest = $2688

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 × 2688}/_{4800 × 8}

= ²⁶⁸⁸⁰⁰/₃₈₄₀₀

= 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) = $4800

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

Simple Interest = $2688 (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 $4800

= ⁸/₁₀₀ × 4800

= ^{8 × 4800}/₁₀₀

= ³⁸⁴⁰⁰/₁₀₀ = 384

Thus, simple Interest for 1 year = $384

Now,

∵ If the simple Interest is $384, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₈₄ years

∴ If the simple Interest is $2688, then the time = ¹/₃₈₄ × 2688 years

= ^{1 × 2688}/₃₈₄ years

= ²⁶⁸⁸/₃₈₄ = 7 years

Thus, time (T) = 7 years Answer

Similar Questions

(1) What amount will be due after 2 years if David borrowed a sum of $3200 at a 9% simple interest?

(2) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $7216 to clear the loan, then find the time period of the loan.

(3) Calculate the amount due if Patricia borrowed a sum of $3150 at 8% simple interest for 3 years.

(4) Christopher took a loan of $6000 at the rate of 10% simple interest per annum. If he paid an amount of $10200 to clear the loan, then find the time period of the loan.

(5) If Thomas borrowed $3800 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(6) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $8268 to clear the loan, then find the time period of the loan.

(7) Calculate the amount due if James borrowed a sum of $3000 at 7% simple interest for 3 years.

(8) Calculate the amount due if William borrowed a sum of $3500 at 9% simple interest for 3 years.

(9) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $8000 to clear the loan, then find the time period of the loan.

(10) Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 6% simple interest.