Simple Interest
Math MCQs

Question :    Robert took a loan of $4200 at the rate of 7% simple interest per annum. If he paid an amount of $6552 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $4200

Rate of Simple Interest (R) = 7% per annum

Amount (A) = $6552

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 = $6552 – $4200 = $2352

Thus, Simple Interest = $2352

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 × 2352}/_{4200 × 7}

= ²³⁵²⁰⁰/₂₉₄₀₀

= 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) = $4200

Rate of Simple Interest (R) = 7% per annum

Simple Interest = $2352 (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 = 7% of Principal

= 7% of $4200

= ⁷/₁₀₀ × 4200

= ^{7 × 4200}/₁₀₀

= ²⁹⁴⁰⁰/₁₀₀ = 294

Thus, simple Interest for 1 year = $294

Now,

∵ If the simple Interest is $294, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₂₉₄ years

∴ If the simple Interest is $2352, then the time = ¹/₂₉₄ × 2352 years

= ^{1 × 2352}/₂₉₄ years

= ²³⁵²/₂₉₄ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) If Jessica borrowed $3750 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.

(2) How much loan did Andrew borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8500 to clear it?

(3) Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 2% simple interest.

(4) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 5% simple interest.

(5) Sarah had to pay $4196.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(6) Find the amount to be paid if Charles borrowed a sum of $5900 at 9% simple interest for 7 years.

(7) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 6% simple interest?

(8) Christopher had to pay $4240 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(9) Calculate the amount due if Richard borrowed a sum of $3600 at 4% simple interest for 4 years.

(10) How much loan did John borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6240 to clear it?