Simple Interest
Math MCQs

Question :    Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $12730 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $6700

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

Amount (A) = $12730

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 = $12730 – $6700 = $6030

Thus, Simple Interest = $6030

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 × 6030}/_{6700 × 9}

= ⁶⁰³⁰⁰⁰/₆₀₃₀₀

= 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) = $6700

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

Simple Interest = $6030 (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 $6700

= ⁹/₁₀₀ × 6700

= ^{9 × 6700}/₁₀₀

= ⁶⁰³⁰⁰/₁₀₀ = 603

Thus, simple Interest for 1 year = $603

Now,

∵ If the simple Interest is $603, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₀₃ years

∴ If the simple Interest is $6030, then the time = ¹/₆₀₃ × 6030 years

= ^{1 × 6030}/₆₀₃ years

= ⁶⁰³⁰/₆₀₃ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Jennifer had to pay $3640 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.

(2) How much loan did Barbara borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6105 to clear it?

(3) If Donna paid $5238 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(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) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 8% simple interest.

(6) 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.

(7) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 6% simple interest.

(8) Find the amount to be paid if Christopher borrowed a sum of $6000 at 10% simple interest for 8 years.

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

(10) Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $10240 to clear the loan, then find the time period of the loan.