Simple Interest
Math MCQs

Question :    Karen took a loan of $5900 at the rate of 9% simple interest per annum. If he paid an amount of $10679 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $5900

Rate of Simple Interest (R) = 9% per annum

Amount (A) = $10679

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 = $10679 – $5900 = $4779

Thus, Simple Interest = $4779

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 × 4779}/_{5900 × 9}

= ⁴⁷⁷⁹⁰⁰/₅₃₁₀₀

= 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) = $5900

Rate of Simple Interest (R) = 9% per annum

Simple Interest = $4779 (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 = 9% of Principal

= 9% of $5900

= ⁹/₁₀₀ × 5900

= ^{9 × 5900}/₁₀₀

= ⁵³¹⁰⁰/₁₀₀ = 531

Thus, simple Interest for 1 year = $531

Now,

∵ If the simple Interest is $531, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₅₃₁ years

∴ If the simple Interest is $4779, then the time = ¹/₅₃₁ × 4779 years

= ^{1 × 4779}/₅₃₁ years

= ⁴⁷⁷⁹/₅₃₁ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 8% simple interest?

(2) Sarah took a loan of $5700 at the rate of 8% simple interest per annum. If he paid an amount of $10260 to clear the loan, then find the time period of the loan.

(3) If Nancy paid $4980 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(4) Calculate the amount due if John borrowed a sum of $3200 at 10% simple interest for 4 years.

(5) Jessica had to pay $4312.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(6) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 9% simple interest?

(7) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 7% simple interest?

(8) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 4% simple interest?

(9) How much loan did Richard borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6160 to clear it?

(10) Sarah took a loan of $5700 at the rate of 8% simple interest per annum. If he paid an amount of $8892 to clear the loan, then find the time period of the loan.