Simple Interest
Math MCQs

Question :    Barbara took a loan of $5100 at the rate of 9% simple interest per annum. If he paid an amount of $9690 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) = 9% per annum

Amount (A) = $9690

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 = $9690 – $5100 = $4590

Thus, Simple Interest = $4590

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 × 4590}/_{5100 × 9}

= ⁴⁵⁹⁰⁰⁰/₄₅₉₀₀

= 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) = 9% per annum

Simple Interest = $4590 (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 $5100

= ⁹/₁₀₀ × 5100

= ^{9 × 5100}/₁₀₀

= ⁴⁵⁹⁰⁰/₁₀₀ = 459

Thus, simple Interest for 1 year = $459

Now,

∵ If the simple Interest is $459, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₅₉ years

∴ If the simple Interest is $4590, then the time = ¹/₄₅₉ × 4590 years

= ^{1 × 4590}/₄₅₉ years

= ⁴⁵⁹⁰/₄₅₉ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Calculate the amount due if Joseph borrowed a sum of $3700 at 2% simple interest for 4 years.

(2) Karen took a loan of $5900 at the rate of 8% simple interest per annum. If he paid an amount of $9676 to clear the loan, then find the time period of the loan.

(3) Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $8288 to clear the loan, then find the time period of the loan.

(4) Sandra took a loan of $6900 at the rate of 6% simple interest per annum. If he paid an amount of $10212 to clear the loan, then find the time period of the loan.

(5) Find the amount to be paid if Susan borrowed a sum of $5650 at 5% simple interest for 8 years.

(6) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 10% simple interest?

(7) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 5% simple interest.

(8) Calculate the amount due if Susan borrowed a sum of $3650 at 2% simple interest for 4 years.

(9) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 4% simple interest.

(10) Anthony had to pay $4687 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.