Simple Interest
Math MCQs

Question :    Richard took a loan of $5200 at the rate of 9% simple interest per annum. If he paid an amount of $9880 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $5200

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

Amount (A) = $9880

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 = $9880 – $5200 = $4680

Thus, Simple Interest = $4680

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 × 4680}/_{5200 × 9}

= ⁴⁶⁸⁰⁰⁰/₄₆₈₀₀

= 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) = $5200

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

Simple Interest = $4680 (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 $5200

= ⁹/₁₀₀ × 5200

= ^{9 × 5200}/₁₀₀

= ⁴⁶⁸⁰⁰/₁₀₀ = 468

Thus, simple Interest for 1 year = $468

Now,

∵ If the simple Interest is $468, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₆₈ years

∴ If the simple Interest is $4680, then the time = ¹/₄₆₈ × 4680 years

= ^{1 × 4680}/₄₆₈ years

= ⁴⁶⁸⁰/₄₆₈ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) What amount does James have to pay after 5 years if he takes a loan of $3000 at 8% simple interest?

(2) What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 8% simple interest?

(3) How much loan did Lisa borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7260 to clear it?

(4) If Michelle paid $5544 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(5) Patricia took a loan of $4300 at the rate of 7% simple interest per annum. If he paid an amount of $7009 to clear the loan, then find the time period of the loan.

(6) Find the amount to be paid if Charles borrowed a sum of $5900 at 5% simple interest for 7 years.

(7) Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $9394 to clear the loan, then find the time period of the loan.

(8) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 10% simple interest?

(9) William took a loan of $5000 at the rate of 7% simple interest per annum. If he paid an amount of $7450 to clear the loan, then find the time period of the loan.

(10) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 6% simple interest?