Simple Interest
Math MCQs

Question :    Margaret took a loan of $6700 at the rate of 6% simple interest per annum. If he paid an amount of $9916 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $6700

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

Amount (A) = $9916

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 = $9916 – $6700 = $3216

Thus, Simple Interest = $3216

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 × 3216}/_{6700 × 6}

= ³²¹⁶⁰⁰/₄₀₂₀₀

= 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) = $6700

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

Simple Interest = $3216 (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 $6700

= ⁶/₁₀₀ × 6700

= ^{6 × 6700}/₁₀₀

= ⁴⁰²⁰⁰/₁₀₀ = 402

Thus, simple Interest for 1 year = $402

Now,

∵ If the simple Interest is $402, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₀₂ years

∴ If the simple Interest is $3216, then the time = ¹/₄₀₂ × 3216 years

= ^{1 × 3216}/₄₀₂ years

= ³²¹⁶/₄₀₂ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) Richard took a loan of $5200 at the rate of 8% simple interest per annum. If he paid an amount of $7696 to clear the loan, then find the time period of the loan.

(2) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $9672 to clear the loan, then find the time period of the loan.

(3) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 3% simple interest for 7 years.

(4) Find the amount to be paid if Karen borrowed a sum of $5950 at 5% simple interest for 8 years.

(5) 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?

(6) Find the amount to be paid if Michael borrowed a sum of $5300 at 3% simple interest for 8 years.

(7) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 10% simple interest.

(8) Daniel had to pay $4469 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 Donald paid $4860 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(10) In how much time a principal of $3100 will amount to $3472 at a simple interest of 4% per annum?