Simple Interest
Math MCQs

Question :    Jessica took a loan of $5500 at the rate of 8% simple interest per annum. If he paid an amount of $9460 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $5500

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

Amount (A) = $9460

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 = $9460 – $5500 = $3960

Thus, Simple Interest = $3960

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 × 3960}/_{5500 × 8}

= ³⁹⁶⁰⁰⁰/₄₄₀₀₀

= 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) = $5500

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

Simple Interest = $3960 (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 $5500

= ⁸/₁₀₀ × 5500

= ^{8 × 5500}/₁₀₀

= ⁴⁴⁰⁰⁰/₁₀₀ = 440

Thus, simple Interest for 1 year = $440

Now,

∵ If the simple Interest is $440, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₄₀ years

∴ If the simple Interest is $3960, then the time = ¹/₄₄₀ × 3960 years

= ^{1 × 3960}/₄₄₀ years

= ³⁹⁶⁰/₄₄₀ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 3% simple interest.

(2) If Karen paid $4266 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(3) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 8% simple interest.

(4) Betty had to pay $4505 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(5) If Margaret paid $4698 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(6) Charles took a loan of $5800 at the rate of 7% simple interest per annum. If he paid an amount of $9048 to clear the loan, then find the time period of the loan.

(7) Robert took a loan of $4200 at the rate of 9% simple interest per annum. If he paid an amount of $6468 to clear the loan, then find the time period of the loan.

(8) Find the amount to be paid if Jessica borrowed a sum of $5750 at 6% simple interest for 8 years.

(9) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $9672 to clear the loan, then find the time period of the loan.

(10) Calculate the amount due if Linda borrowed a sum of $3350 at 6% simple interest for 3 years.