Simple Interest
Math MCQs

Question :    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.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $4300

Rate of Simple Interest (R) = 6% per annum

Amount (A) = $6364

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 = $6364 – $4300 = $2064

Thus, Simple Interest = $2064

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 × 2064}/_{4300 × 6}

= ²⁰⁶⁴⁰⁰/₂₅₈₀₀

= 8 years (using formula)

Thus, Time (T) = 8 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) = 6% per annum

Simple Interest = $2064 (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 = 6% of Principal

= 6% of $4300

= ⁶/₁₀₀ × 4300

= ^{6 × 4300}/₁₀₀

= ²⁵⁸⁰⁰/₁₀₀ = 258

Thus, simple Interest for 1 year = $258

Now,

∵ If the simple Interest is $258, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₂₅₈ years

∴ If the simple Interest is $2064, then the time = ¹/₂₅₈ × 2064 years

= ^{1 × 2064}/₂₅₈ years

= ²⁰⁶⁴/₂₅₈ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) If Elizabeth paid $3864 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(2) Sarah took a loan of $5700 at the rate of 8% simple interest per annum. If he paid an amount of $8436 to clear the loan, then find the time period of the loan.

(3) Find the amount to be paid if William borrowed a sum of $5500 at 3% simple interest for 8 years.

(4) In how much time a principal of $3000 will amount to $3240 at a simple interest of 4% per annum?

(5) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 9% simple interest?

(6) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 9% simple interest?

(7) Calculate the amount due if William borrowed a sum of $3500 at 5% simple interest for 4 years.

(8) If Emily paid $5510 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(9) Find the amount to be paid if Charles borrowed a sum of $5900 at 2% simple interest for 8 years.

(10) Michael took a loan of $4600 at the rate of 8% simple interest per annum. If he paid an amount of $7544 to clear the loan, then find the time period of the loan.