Simple Interest
Math MCQs

Question :    Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $9943 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) = 9% per annum

Amount (A) = $9943

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 = $9943 – $6100 = $3843

Thus, Simple Interest = $3843

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 × 3843}/_{6100 × 9}

= ³⁸⁴³⁰⁰/₅₄₉₀₀

= 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) = 9% per annum

Simple Interest = $3843 (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 $6100

= ⁹/₁₀₀ × 6100

= ^{9 × 6100}/₁₀₀

= ⁵⁴⁹⁰⁰/₁₀₀ = 549

Thus, simple Interest for 1 year = $549

Now,

∵ If the simple Interest is $549, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₅₄₉ years

∴ If the simple Interest is $3843, then the time = ¹/₅₄₉ × 3843 years

= ^{1 × 3843}/₅₄₉ years

= ³⁸⁴³/₅₄₉ = 7 years

Thus, time (T) = 7 years Answer

Similar Questions

(1) Find the amount to be paid if Mary borrowed a sum of $5050 at 6% simple interest for 7 years.

(2) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $10318 to clear the loan, then find the time period of the loan.

(3) If Joseph borrowed $3700 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.

(4) In how much time a principal of $3000 will amount to $3180 at a simple interest of 3% per annum?

(5) If James paid $3480 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(6) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 10% simple interest?

(7) Calculate the amount due after 9 years if Susan borrowed a sum of $5650 at a rate of 9% simple interest.

(8) How much loan did Daniel borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7320 to clear it?

(9) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 2% simple interest for 8 years.

(10) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 5% simple interest.