Simple Interest
Math MCQs

Question :    Sandra took a loan of $6900 at the rate of 10% simple interest per annum. If he paid an amount of $11730 to clear the loan, then find the time period of the loan.

Correct Answer  7

Solution & Explanation

Solution

Given,

Principal (P) = $6900

Rate of Simple Interest (R) = 10% per annum

Amount (A) = $11730

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 = $11730 – $6900 = $4830

Thus, Simple Interest = $4830

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 × 4830}/_{6900 × 10}

= ⁴⁸³⁰⁰⁰/₆₉₀₀₀

= 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) = $6900

Rate of Simple Interest (R) = 10% per annum

Simple Interest = $4830 (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 = 10% of Principal

= 10% of $6900

= ¹⁰/₁₀₀ × 6900

= ^{10 × 6900}/₁₀₀

= ⁶⁹⁰⁰⁰/₁₀₀ = 690

Thus, simple Interest for 1 year = $690

Now,

∵ If the simple Interest is $690, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₉₀ years

∴ If the simple Interest is $4830, then the time = ¹/₆₉₀ × 4830 years

= ^{1 × 4830}/₆₉₀ years

= ⁴⁸³⁰/₆₉₀ = 7 years

Thus, time (T) = 7 years Answer

Similar Questions

(1) If Christopher borrowed $4000 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.

(2) Susan took a loan of $5300 at the rate of 9% simple interest per annum. If he paid an amount of $9116 to clear the loan, then find the time period of the loan.

(3) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $6364 to clear the loan, then find the time period of the loan.

(4) Find the amount to be paid if Joseph borrowed a sum of $5700 at 2% simple interest for 8 years.

(5) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $9086 to clear the loan, then find the time period of the loan.

(6) Barbara took a loan of $5100 at the rate of 8% simple interest per annum. If he paid an amount of $9180 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 9% simple interest for 3 years.

(8) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 5% simple interest?

(9) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 3% simple interest.

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