Simple Interest
Math MCQs

Question :    Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $9116 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $5300

Rate of Simple Interest (R) = 8% per annum

Amount (A) = $9116

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 = $9116 – $5300 = $3816

Thus, Simple Interest = $3816

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 × 3816}/_{5300 × 8}

= ³⁸¹⁶⁰⁰/₄₂₄₀₀

= 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) = $5300

Rate of Simple Interest (R) = 8% per annum

Simple Interest = $3816 (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 = 8% of Principal

= 8% of $5300

= ⁸/₁₀₀ × 5300

= ^{8 × 5300}/₁₀₀

= ⁴²⁴⁰⁰/₁₀₀ = 424

Thus, simple Interest for 1 year = $424

Now,

∵ If the simple Interest is $424, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₂₄ years

∴ If the simple Interest is $3816, then the time = ¹/₄₂₄ × 3816 years

= ^{1 × 3816}/₄₂₄ years

= ³⁸¹⁶/₄₂₄ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 4% simple interest?

(2) Calculate the amount due if Karen borrowed a sum of $3950 at 6% simple interest for 4 years.

(3) If Charles paid $4212 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(4) Jessica took a loan of $5500 at the rate of 8% simple interest per annum. If he paid an amount of $9020 to clear the loan, then find the time period of the loan.

(5) If David borrowed $3400 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(6) Find the amount to be paid if Barbara borrowed a sum of $5550 at 9% simple interest for 7 years.

(7) Find the amount to be paid if Michael borrowed a sum of $5300 at 9% simple interest for 7 years.

(8) If Susan paid $3942 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(9) Calculate the amount due if Sarah borrowed a sum of $3850 at 3% simple interest for 4 years.

(10) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 8% simple interest?