Simple Interest
Math MCQs

Question :    Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $8740 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $4600

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

Amount (A) = $8740

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 = $8740 – $4600 = $4140

Thus, Simple Interest = $4140

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 × 4140}/_{4600 × 9}

= ⁴¹⁴⁰⁰⁰/₄₁₄₀₀

= 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) = $4600

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

Simple Interest = $4140 (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 $4600

= ⁹/₁₀₀ × 4600

= ^{9 × 4600}/₁₀₀

= ⁴¹⁴⁰⁰/₁₀₀ = 414

Thus, simple Interest for 1 year = $414

Now,

∵ If the simple Interest is $414, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₁₄ years

∴ If the simple Interest is $4140, then the time = ¹/₄₁₄ × 4140 years

= ^{1 × 4140}/₄₁₄ years

= ⁴¹⁴⁰/₄₁₄ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Find the amount to be paid if James borrowed a sum of $5000 at 8% simple interest for 8 years.

(2) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $7488 to clear the loan, then find the time period of the loan.

(3) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 5% simple interest?

(4) Find the amount to be paid if Joseph borrowed a sum of $5700 at 3% simple interest for 7 years.

(5) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $11247 to clear the loan, then find the time period of the loan.

(6) Calculate the amount due if Charles borrowed a sum of $3900 at 5% simple interest for 3 years.

(7) Calculate the amount due if Karen borrowed a sum of $3950 at 6% simple interest for 3 years.

(8) Elizabeth took a loan of $4900 at the rate of 10% simple interest per annum. If he paid an amount of $9310 to clear the loan, then find the time period of the loan.

(9) Richard took a loan of $5200 at the rate of 8% simple interest per annum. If he paid an amount of $8528 to clear the loan, then find the time period of the loan.

(10) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $9176 to clear the loan, then find the time period of the loan.