Simple Interest
Math MCQs

Question :    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.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $5700

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

Amount (A) = $10260

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 = $10260 – $5700 = $4560

Thus, Simple Interest = $4560

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 × 4560}/_{5700 × 8}

= ⁴⁵⁶⁰⁰⁰/₄₅₆₀₀

= 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) = $5700

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

Simple Interest = $4560 (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 $5700

= ⁸/₁₀₀ × 5700

= ^{8 × 5700}/₁₀₀

= ⁴⁵⁶⁰⁰/₁₀₀ = 456

Thus, simple Interest for 1 year = $456

Now,

∵ If the simple Interest is $456, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₅₆ years

∴ If the simple Interest is $4560, then the time = ¹/₄₅₆ × 4560 years

= ^{1 × 4560}/₄₅₆ years

= ⁴⁵⁶⁰/₄₅₆ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Calculate the amount due if Christopher borrowed a sum of $4000 at 4% simple interest for 3 years.

(2) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 5% simple interest?

(3) Kimberly had to pay $4929 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(4) Find the amount to be paid if Joseph borrowed a sum of $5700 at 10% simple interest for 8 years.

(5) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 6% simple interest?

(6) Calculate the amount due if David borrowed a sum of $3400 at 5% simple interest for 3 years.

(7) Christopher took a loan of $6000 at the rate of 9% simple interest per annum. If he paid an amount of $11400 to clear the loan, then find the time period of the loan.

(8) Find the amount to be paid if Richard borrowed a sum of $5600 at 7% simple interest for 7 years.

(9) What amount does John have to pay after 5 years if he takes a loan of $3200 at 7% simple interest?

(10) Susan took a loan of $5300 at the rate of 9% simple interest per annum. If he paid an amount of $9116 to clear the loan, then find the time period of the loan.