Simple Interest
Math MCQs

Question :    Sandra took a loan of $6900 at the rate of 6% simple interest per annum. If he paid an amount of $10626 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $6900

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

Amount (A) = $10626

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 = $10626 – $6900 = $3726

Thus, Simple Interest = $3726

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 × 3726}/_{6900 × 6}

= ³⁷²⁶⁰⁰/₄₁₄₀₀

= 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) = $6900

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

Simple Interest = $3726 (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 $6900

= ⁶/₁₀₀ × 6900

= ^{6 × 6900}/₁₀₀

= ⁴¹⁴⁰⁰/₁₀₀ = 414

Thus, simple Interest for 1 year = $414

Now,

∵ If the simple Interest is $414, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₁₄ years

∴ If the simple Interest is $3726, then the time = ¹/₄₁₄ × 3726 years

= ^{1 × 3726}/₄₁₄ years

= ³⁷²⁶/₄₁₄ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 9% simple interest.

(2) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 6% simple interest?

(3) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 4% simple interest?

(4) Donald took a loan of $7000 at the rate of 6% simple interest per annum. If he paid an amount of $9940 to clear the loan, then find the time period of the loan.

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

(6) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $9976 to clear the loan, then find the time period of the loan.

(7) Kimberly had to pay $4929 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(8) Calculate the amount due if Joseph borrowed a sum of $3700 at 7% simple interest for 4 years.

(9) If Paul paid $5076 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(10) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 5% simple interest?