Simple Interest
Math MCQs

Question :    Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $9768 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $6600

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

Amount (A) = $9768

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 = $9768 – $6600 = $3168

Thus, Simple Interest = $3168

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 × 3168}/_{6600 × 6}

= ³¹⁶⁸⁰⁰/₃₉₆₀₀

= 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) = $6600

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

Simple Interest = $3168 (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 $6600

= ⁶/₁₀₀ × 6600

= ^{6 × 6600}/₁₀₀

= ³⁹⁶⁰⁰/₁₀₀ = 396

Thus, simple Interest for 1 year = $396

Now,

∵ If the simple Interest is $396, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₉₆ years

∴ If the simple Interest is $3168, then the time = ¹/₃₉₆ × 3168 years

= ^{1 × 3168}/₃₉₆ years

= ³¹⁶⁸/₃₉₆ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) What amount will be due after 2 years if Paul borrowed a sum of $3850 at a 9% simple interest?

(2) Michael took a loan of $4600 at the rate of 8% simple interest per annum. If he paid an amount of $7176 to clear the loan, then find the time period of the loan.

(3) Find the amount to be paid if John borrowed a sum of $5200 at 10% simple interest for 7 years.

(4) Find the amount to be paid if Thomas borrowed a sum of $5800 at 6% simple interest for 7 years.

(5) Thomas took a loan of $5600 at the rate of 10% simple interest per annum. If he paid an amount of $10640 to clear the loan, then find the time period of the loan.

(6) In how much time a principal of $3000 will amount to $3270 at a simple interest of 3% per annum?

(7) Steven had to pay $5014 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

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

(9) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 2% simple interest?

(10) Find the amount to be paid if James borrowed a sum of $5000 at 3% simple interest for 8 years.