Simple Interest
Math MCQs

Question :    Joseph took a loan of $5400 at the rate of 9% simple interest per annum. If he paid an amount of $9288 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $5400

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

Amount (A) = $9288

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 = $9288 – $5400 = $3888

Thus, Simple Interest = $3888

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 × 3888}/_{5400 × 9}

= ³⁸⁸⁸⁰⁰/₄₈₆₀₀

= 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) = $5400

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

Simple Interest = $3888 (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 $5400

= ⁹/₁₀₀ × 5400

= ^{9 × 5400}/₁₀₀

= ⁴⁸⁶⁰⁰/₁₀₀ = 486

Thus, simple Interest for 1 year = $486

Now,

∵ If the simple Interest is $486, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₈₆ years

∴ If the simple Interest is $3888, then the time = ¹/₄₈₆ × 3888 years

= ^{1 × 3888}/₄₈₆ years

= ³⁸⁸⁸/₄₈₆ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) If Mary borrowed $3050 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.

(2) What amount does John have to pay after 5 years if he takes a loan of $3200 at 10% simple interest?

(3) Find the amount to be paid if Sarah borrowed a sum of $5850 at 7% simple interest for 8 years.

(4) Calculate the amount due if Barbara borrowed a sum of $3550 at 4% simple interest for 3 years.

(5) Matthew took a loan of $6400 at the rate of 7% simple interest per annum. If he paid an amount of $10880 to clear the loan, then find the time period of the loan.

(6) How much loan did Robert borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6120 to clear it?

(7) Nancy took a loan of $6300 at the rate of 8% simple interest per annum. If he paid an amount of $10332 to clear the loan, then find the time period of the loan.

(8) If Donald paid $5040 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(9) Anthony took a loan of $6600 at the rate of 6% simple interest per annum. If he paid an amount of $8976 to clear the loan, then find the time period of the loan.

(10) If Jessica paid $4500 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.