Simple Interest
Math MCQs

Question :    Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $8288 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $5600

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

Amount (A) = $8288

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 = $8288 – $5600 = $2688

Thus, Simple Interest = $2688

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 × 2688}/_{5600 × 6}

= ²⁶⁸⁸⁰⁰/₃₃₆₀₀

= 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) = $5600

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

Simple Interest = $2688 (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 $5600

= ⁶/₁₀₀ × 5600

= ^{6 × 5600}/₁₀₀

= ³³⁶⁰⁰/₁₀₀ = 336

Thus, simple Interest for 1 year = $336

Now,

∵ If the simple Interest is $336, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₃₆ years

∴ If the simple Interest is $2688, then the time = ¹/₃₃₆ × 2688 years

= ^{1 × 2688}/₃₃₆ years

= ²⁶⁸⁸/₃₃₆ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 2% simple interest.

(2) How much loan did Donald borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8125 to clear it?

(3) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 4% simple interest.

(4) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 10% simple interest.

(5) Find the amount to be paid if William borrowed a sum of $5500 at 9% simple interest for 8 years.

(6) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 6% simple interest.

(7) If Jennifer paid $3640 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(8) Ashley had to pay $4959.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(9) If Richard paid $4032 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(10) Calculate the amount due if Michael borrowed a sum of $3300 at 10% simple interest for 3 years.