Simple Interest
Math MCQs

Question :    Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $8316 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $5400

Rate of Simple Interest (R) = 6% per annum

Amount (A) = $8316

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 = $8316 – $5400 = $2916

Thus, Simple Interest = $2916

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 × 2916}/_{5400 × 6}

= ²⁹¹⁶⁰⁰/₃₂₄₀₀

= 9 years (using formula)

Thus, Time (T) = 9 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) = 6% per annum

Simple Interest = $2916 (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 = 6% of Principal

= 6% of $5400

= ⁶/₁₀₀ × 5400

= ^{6 × 5400}/₁₀₀

= ³²⁴⁰⁰/₁₀₀ = 324

Thus, simple Interest for 1 year = $324

Now,

∵ If the simple Interest is $324, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₂₄ years

∴ If the simple Interest is $2916, then the time = ¹/₃₂₄ × 2916 years

= ^{1 × 2916}/₃₂₄ years

= ²⁹¹⁶/₃₂₄ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) If Mark paid $5280 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(2) Nancy took a loan of $6300 at the rate of 6% simple interest per annum. If he paid an amount of $8568 to clear the loan, then find the time period of the loan.

(3) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 10% simple interest?

(4) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 7% simple interest?

(5) Calculate the amount due if Mary borrowed a sum of $3050 at 2% simple interest for 3 years.

(6) Christopher had to pay $4480 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.

(7) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 7% simple interest.

(8) How much loan did John borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6240 to clear it?

(9) Calculate the amount due if John borrowed a sum of $3200 at 10% simple interest for 4 years.

(10) If Michael borrowed $3300 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.