Simple Interest
Math MCQs

Question :    David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $7824 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $4800

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

Amount (A) = $7824

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 = $7824 – $4800 = $3024

Thus, Simple Interest = $3024

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 × 3024}/_{4800 × 7}

= ³⁰²⁴⁰⁰/₃₃₆₀₀

= 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) = $4800

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

Simple Interest = $3024 (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 $4800

= ⁷/₁₀₀ × 4800

= ^{7 × 4800}/₁₀₀

= ³³⁶⁰⁰/₁₀₀ = 336

Thus, simple Interest for 1 year = $336

Now,

∵ If the simple Interest is $336, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₃₃₆ years

∴ If the simple Interest is $3024, then the time = ¹/₃₃₆ × 3024 years

= ^{1 × 3024}/₃₃₆ years

= ³⁰²⁴/₃₃₆ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) Margaret took a loan of $6700 at the rate of 8% simple interest per annum. If he paid an amount of $11524 to clear the loan, then find the time period of the loan.

(2) Find the amount to be paid if Charles borrowed a sum of $5900 at 9% simple interest for 8 years.

(3) Margaret had to pay $4741.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(4) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 10% simple interest for 3 years.

(5) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 5% simple interest?

(6) Joseph took a loan of $5400 at the rate of 7% simple interest per annum. If he paid an amount of $8802 to clear the loan, then find the time period of the loan.

(7) How much loan did David borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6210 to clear it?

(8) Jessica took a loan of $5500 at the rate of 10% simple interest per annum. If he paid an amount of $11000 to clear the loan, then find the time period of the loan.

(9) Find the amount to be paid if Richard borrowed a sum of $5600 at 2% simple interest for 8 years.

(10) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 2% simple interest?