Simple Interest
Math MCQs

Question :    Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $10200 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $6000

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

Amount (A) = $10200

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 = $10200 – $6000 = $4200

Thus, Simple Interest = $4200

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 × 4200}/_{6000 × 7}

= ⁴²⁰⁰⁰⁰/₄₂₀₀₀

= 10 years (using formula)

Thus, Time (T) = 10 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) = $6000

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

Simple Interest = $4200 (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 $6000

= ⁷/₁₀₀ × 6000

= ^{7 × 6000}/₁₀₀

= ⁴²⁰⁰⁰/₁₀₀ = 420

Thus, simple Interest for 1 year = $420

Now,

∵ If the simple Interest is $420, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₂₀ years

∴ If the simple Interest is $4200, then the time = ¹/₄₂₀ × 4200 years

= ^{1 × 4200}/₄₂₀ years

= ⁴²⁰⁰/₄₂₀ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $7200 to clear the loan, then find the time period of the loan.

(2) How much loan did Michelle borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8687.5 to clear it?

(3) Daniel took a loan of $6200 at the rate of 7% simple interest per annum. If he paid an amount of $9238 to clear the loan, then find the time period of the loan.

(4) How much loan did Kevin borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7810 to clear it?

(5) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $7700 to clear the loan, then find the time period of the loan.

(6) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 4% simple interest?

(7) If Joseph borrowed $3700 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(8) Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $9856 to clear the loan, then find the time period of the loan.

(9) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $8256 to clear the loan, then find the time period of the loan.

(10) If Nancy paid $4648 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.