Simple Interest
Math MCQs

Question :    Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $10664 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $6200

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

Amount (A) = $10664

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 = $10664 – $6200 = $4464

Thus, Simple Interest = $4464

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 × 4464}/_{6200 × 9}

= ⁴⁴⁶⁴⁰⁰/₅₅₈₀₀

= 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) = $6200

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

Simple Interest = $4464 (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 $6200

= ⁹/₁₀₀ × 6200

= ^{9 × 6200}/₁₀₀

= ⁵⁵⁸⁰⁰/₁₀₀ = 558

Thus, simple Interest for 1 year = $558

Now,

∵ If the simple Interest is $558, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₅₅₈ years

∴ If the simple Interest is $4464, then the time = ¹/₅₅₈ × 4464 years

= ^{1 × 4464}/₅₅₈ years

= ⁴⁴⁶⁴/₅₅₈ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) Lisa took a loan of $6100 at the rate of 8% simple interest per annum. If he paid an amount of $10492 to clear the loan, then find the time period of the loan.

(2) If Joseph borrowed $3700 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(3) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 6% simple interest.

(4) If Michael paid $3960 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(5) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 8% simple interest?

(6) Calculate the amount due if James borrowed a sum of $3000 at 9% simple interest for 4 years.

(7) What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 8% simple interest?

(8) Find the amount to be paid if Mary borrowed a sum of $5050 at 10% simple interest for 7 years.

(9) What amount does William have to pay after 6 years if he takes a loan of $3500 at 2% simple interest?

(10) Kenneth had to pay $5300 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.