Simple Interest
Math MCQs

Question :    Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $7335 to clear the loan, then find the time period of the loan.

Correct Answer  7

Solution & Explanation

Solution

Given,

Principal (P) = $4500

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

Amount (A) = $7335

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 = $7335 – $4500 = $2835

Thus, Simple Interest = $2835

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 × 2835}/_{4500 × 9}

= ²⁸³⁵⁰⁰/₄₀₅₀₀

= 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) = $4500

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

Simple Interest = $2835 (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 $4500

= ⁹/₁₀₀ × 4500

= ^{9 × 4500}/₁₀₀

= ⁴⁰⁵⁰⁰/₁₀₀ = 405

Thus, simple Interest for 1 year = $405

Now,

∵ If the simple Interest is $405, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₀₅ years

∴ If the simple Interest is $2835, then the time = ¹/₄₀₅ × 2835 years

= ^{1 × 2835}/₄₀₅ years

= ²⁸³⁵/₄₀₅ = 7 years

Thus, time (T) = 7 years Answer

Similar Questions

(1) How much loan did Karen borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7140 to clear it?

(2) Find the amount to be paid if William borrowed a sum of $5500 at 5% simple interest for 8 years.

(3) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $6512 to clear the loan, then find the time period of the loan.

(4) How much loan did William borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6325 to clear it?

(5) Jessica took a loan of $5500 at the rate of 8% simple interest per annum. If he paid an amount of $8140 to clear the loan, then find the time period of the loan.

(6) Calculate the amount due if Mary borrowed a sum of $3050 at 2% simple interest for 3 years.

(7) Richard took a loan of $5200 at the rate of 10% simple interest per annum. If he paid an amount of $9880 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due if Susan borrowed a sum of $3650 at 6% simple interest for 3 years.

(9) What amount will be due after 2 years if William borrowed a sum of $3250 at a 10% simple interest?

(10) Sandra took a loan of $6900 at the rate of 7% simple interest per annum. If he paid an amount of $10281 to clear the loan, then find the time period of the loan.