Simple Interest
Math MCQs

Question :    Lisa took a loan of $6100 at the rate of 10% simple interest per annum. If he paid an amount of $11590 to clear the loan, then find the time period of the loan.

Correct Answer  9

Solution & Explanation

Solution

Given,

Principal (P) = $6100

Rate of Simple Interest (R) = 10% per annum

Amount (A) = $11590

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 = $11590 – $6100 = $5490

Thus, Simple Interest = $5490

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 × 5490}/_{6100 × 10}

= ⁵⁴⁹⁰⁰⁰/₆₁₀₀₀

= 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) = $6100

Rate of Simple Interest (R) = 10% per annum

Simple Interest = $5490 (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 = 10% of Principal

= 10% of $6100

= ¹⁰/₁₀₀ × 6100

= ^{10 × 6100}/₁₀₀

= ⁶¹⁰⁰⁰/₁₀₀ = 610

Thus, simple Interest for 1 year = $610

Now,

∵ If the simple Interest is $610, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₁₀ years

∴ If the simple Interest is $5490, then the time = ¹/₆₁₀ × 5490 years

= ^{1 × 5490}/₆₁₀ years

= ⁵⁴⁹⁰/₆₁₀ = 9 years

Thus, time (T) = 9 years Answer

Similar Questions

(1) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $8580 to clear the loan, then find the time period of the loan.

(2) Find the amount to be paid if Karen borrowed a sum of $5950 at 3% simple interest for 7 years.

(3) How much loan did Paul borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8040 to clear it?

(4) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 3% simple interest.

(5) Calculate the amount due after 10 years if Barbara borrowed a sum of $5550 at a rate of 7% simple interest.

(6) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 7% simple interest.

(7) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 3% simple interest for 7 years.

(8) What amount does James have to pay after 6 years if he takes a loan of $3000 at 9% simple interest?

(9) Find the amount to be paid if Linda borrowed a sum of $5350 at 6% simple interest for 8 years.

(10) If Paul paid $5076 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.