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) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $11084 to clear the loan, then find the time period of the loan.

(2) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 8% simple interest?

(3) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 10% simple interest?

(4) If Kimberly paid $5394 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(5) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 4% simple interest.

(6) Calculate the amount due if Thomas borrowed a sum of $3800 at 6% simple interest for 3 years.

(7) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 10% simple interest?

(8) David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $8160 to clear the loan, then find the time period of the loan.

(9) Find the amount to be paid if William borrowed a sum of $5500 at 9% simple interest for 7 years.

(10) If Elizabeth paid $3726 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.