Simple Interest
Math MCQs

Question :    David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $8640 to clear the loan, then find the time period of the loan.

Correct Answer  8

Solution & Explanation

Solution

Given,

Principal (P) = $4800

Rate of Simple Interest (R) = 10% per annum

Amount (A) = $8640

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 = $8640 – $4800 = $3840

Thus, Simple Interest = $3840

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 × 3840}/_{4800 × 10}

= ³⁸⁴⁰⁰⁰/₄₈₀₀₀

= 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) = $4800

Rate of Simple Interest (R) = 10% per annum

Simple Interest = $3840 (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 = 10% of Principal

= 10% of $4800

= ¹⁰/₁₀₀ × 4800

= ^{10 × 4800}/₁₀₀

= ⁴⁸⁰⁰⁰/₁₀₀ = 480

Thus, simple Interest for 1 year = $480

Now,

∵ If the simple Interest is $480, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₈₀ years

∴ If the simple Interest is $3840, then the time = ¹/₄₈₀ × 3840 years

= ^{1 × 3840}/₄₈₀ years

= ³⁸⁴⁰/₄₈₀ = 8 years

Thus, time (T) = 8 years Answer

Similar Questions

(1) Matthew took a loan of $6400 at the rate of 8% simple interest per annum. If he paid an amount of $9984 to clear the loan, then find the time period of the loan.

(2) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 9% simple interest?

(3) Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $9291 to clear the loan, then find the time period of the loan.

(4) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6216 to clear the loan, then find the time period of the loan.

(5) Calculate the amount due if Thomas borrowed a sum of $3800 at 9% simple interest for 4 years.

(6) Calculate the amount due if Richard borrowed a sum of $3600 at 2% simple interest for 4 years.

(7) Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 8% simple interest.

(8) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6468 to clear the loan, then find the time period of the loan.

(9) What amount does John have to pay after 5 years if he takes a loan of $3200 at 9% simple interest?

(10) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $8932 to clear the loan, then find the time period of the loan.