Simple Interest
Math MCQs

Question :    Patricia took a loan of $4300 at the rate of 9% simple interest per annum. If he paid an amount of $7009 to clear the loan, then find the time period of the loan.

Correct Answer  7

Solution & Explanation

Solution

Given,

Principal (P) = $4300

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

Amount (A) = $7009

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 = $7009 – $4300 = $2709

Thus, Simple Interest = $2709

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 × 2709}/_{4300 × 9}

= ²⁷⁰⁹⁰⁰/₃₈₇₀₀

= 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) = $4300

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

Simple Interest = $2709 (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 $4300

= ⁹/₁₀₀ × 4300

= ^{9 × 4300}/₁₀₀

= ³⁸⁷⁰⁰/₁₀₀ = 387

Thus, simple Interest for 1 year = $387

Now,

∵ If the simple Interest is $387, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₈₇ years

∴ If the simple Interest is $2709, then the time = ¹/₃₈₇ × 2709 years

= ^{1 × 2709}/₃₈₇ years

= ²⁷⁰⁹/₃₈₇ = 7 years

Thus, time (T) = 7 years Answer

Similar Questions

(1) Calculate the amount due if Robert borrowed a sum of $3100 at 2% simple interest for 3 years.

(2) Elizabeth had to pay $3967.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(3) How much loan did Karen borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6545 to clear it?

(4) Jessica took a loan of $5500 at the rate of 6% simple interest per annum. If he paid an amount of $8470 to clear the loan, then find the time period of the loan.

(5) John took a loan of $4400 at the rate of 7% simple interest per annum. If he paid an amount of $6248 to clear the loan, then find the time period of the loan.

(6) What amount does Karen have to pay after 6 years if he takes a loan of $3950 at 9% simple interest?

(7) Find the amount to be paid if Richard borrowed a sum of $5600 at 8% simple interest for 7 years.

(8) How much loan did James borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6250 to clear it?

(9) Jessica took a loan of $5500 at the rate of 9% simple interest per annum. If he paid an amount of $8965 to clear the loan, then find the time period of the loan.

(10) Christopher had to pay $4240 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.