Simple Interest
Math MCQs

Question :    Barbara took a loan of $5100 at the rate of 8% simple interest per annum. If he paid an amount of $9180 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $5100

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

Amount (A) = $9180

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 = $9180 – $5100 = $4080

Thus, Simple Interest = $4080

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 × 4080}/_{5100 × 8}

= ⁴⁰⁸⁰⁰⁰/₄₀₈₀₀

= 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) = $5100

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

Simple Interest = $4080 (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 $5100

= ⁸/₁₀₀ × 5100

= ^{8 × 5100}/₁₀₀

= ⁴⁰⁸⁰⁰/₁₀₀ = 408

Thus, simple Interest for 1 year = $408

Now,

∵ If the simple Interest is $408, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₀₈ years

∴ If the simple Interest is $4080, then the time = ¹/₄₀₈ × 4080 years

= ^{1 × 4080}/₄₀₈ years

= ⁴⁰⁸⁰/₄₀₈ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Jennifer took a loan of $4500 at the rate of 6% simple interest per annum. If he paid an amount of $7200 to clear the loan, then find the time period of the loan.

(2) Barbara had to pay $3869.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(3) What amount does John have to pay after 5 years if he takes a loan of $3200 at 10% simple interest?

(4) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 7% simple interest.

(5) Joseph had to pay $4033 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(6) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 9% simple interest?

(7) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 2% simple interest?

(8) If Jennifer borrowed $3250 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(9) How much loan did Brian borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $7920 to clear it?

(10) Find the amount to be paid if David borrowed a sum of $5400 at 10% simple interest for 8 years.