Simple Interest
Math MCQs

Question :    Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $12160 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $6400

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

Amount (A) = $12160

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 = $12160 – $6400 = $5760

Thus, Simple Interest = $5760

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 × 5760}/_{6400 × 9}

= ⁵⁷⁶⁰⁰⁰/₅₇₆₀₀

= 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) = $6400

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

Simple Interest = $5760 (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 $6400

= ⁹/₁₀₀ × 6400

= ^{9 × 6400}/₁₀₀

= ⁵⁷⁶⁰⁰/₁₀₀ = 576

Thus, simple Interest for 1 year = $576

Now,

∵ If the simple Interest is $576, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₅₇₆ years

∴ If the simple Interest is $5760, then the time = ¹/₅₇₆ × 5760 years

= ^{1 × 5760}/₅₇₆ years

= ⁵⁷⁶⁰/₅₇₆ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 9% simple interest?

(2) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 3% simple interest?

(3) Donald took a loan of $7000 at the rate of 7% simple interest per annum. If he paid an amount of $10430 to clear the loan, then find the time period of the loan.

(4) Find the amount to be paid if John borrowed a sum of $5200 at 8% simple interest for 7 years.

(5) If Christopher borrowed $4000 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.

(6) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $11222 to clear the loan, then find the time period of the loan.

(7) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 5% simple interest.

(8) 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.

(9) If Robert paid $3596 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(10) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 8% simple interest?