Simple Interest
Math MCQs

Question :    Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $7335 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $4500

Rate of Simple Interest (R) = 7% per annum

Amount (A) = $7335

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 = $7335 – $4500 = $2835

Thus, Simple Interest = $2835

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 × 2835}/_{4500 × 7}

= ²⁸³⁵⁰⁰/₃₁₅₀₀

= 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) = $4500

Rate of Simple Interest (R) = 7% per annum

Simple Interest = $2835 (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 = 7% of Principal

= 7% of $4500

= ⁷/₁₀₀ × 4500

= ^{7 × 4500}/₁₀₀

= ³¹⁵⁰⁰/₁₀₀ = 315

Thus, simple Interest for 1 year = $315

Now,

∵ If the simple Interest is $315, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₁₅ years

∴ If the simple Interest is $2835, then the time = ¹/₃₁₅ × 2835 years

= ^{1 × 2835}/₃₁₅ years

= ²⁸³⁵/₃₁₅ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 4% simple interest?

(2) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 9% simple interest?

(3) Betty took a loan of $6500 at the rate of 9% simple interest per annum. If he paid an amount of $11765 to clear the loan, then find the time period of the loan.

(4) If Elizabeth borrowed $3450 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.

(5) 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.

(6) Find the amount to be paid if Linda borrowed a sum of $5350 at 7% simple interest for 7 years.

(7) James took a loan of $4000 at the rate of 6% simple interest per annum. If he paid an amount of $5920 to clear the loan, then find the time period of the loan.

(8) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 6% simple interest?

(9) If Lisa paid $4698 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(10) Barbara had to pay $3763 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.