Simple Interest
Math MCQs

Question :    Susan took a loan of $5300 at the rate of 9% simple interest per annum. If he paid an amount of $9116 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $5300

Rate of Simple Interest (R) = 9% per annum

Amount (A) = $9116

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 = $9116 – $5300 = $3816

Thus, Simple Interest = $3816

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 × 3816}/_{5300 × 9}

= ³⁸¹⁶⁰⁰/₄₇₇₀₀

= 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) = $5300

Rate of Simple Interest (R) = 9% per annum

Simple Interest = $3816 (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 = 9% of Principal

= 9% of $5300

= ⁹/₁₀₀ × 5300

= ^{9 × 5300}/₁₀₀

= ⁴⁷⁷⁰⁰/₁₀₀ = 477

Thus, simple Interest for 1 year = $477

Now,

∵ If the simple Interest is $477, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₇₇ years

∴ If the simple Interest is $3816, then the time = ¹/₄₇₇ × 3816 years

= ^{1 × 3816}/₄₇₇ years

= ³⁸¹⁶/₄₇₇ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) Calculate the amount due if Sarah borrowed a sum of $3850 at 2% simple interest for 3 years.

(2) Elizabeth took a loan of $4900 at the rate of 10% simple interest per annum. If he paid an amount of $8820 to clear the loan, then find the time period of the loan.

(3) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 5% simple interest.

(4) What amount will be due after 2 years if Andrew borrowed a sum of $3900 at a 6% simple interest?

(5) Find the amount to be paid if William borrowed a sum of $5500 at 5% simple interest for 7 years.

(6) 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.

(7) How much loan did David borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6480 to clear it?

(8) If Sandra paid $5162 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(9) James took a loan of $4000 at the rate of 9% simple interest per annum. If he paid an amount of $7600 to clear the loan, then find the time period of the loan.

(10) Christopher took a loan of $6000 at the rate of 10% simple interest per annum. If he paid an amount of $12000 to clear the loan, then find the time period of the loan.