Simple Interest
Math MCQs

Question :    Mary took a loan of $4100 at the rate of 10% simple interest per annum. If he paid an amount of $8200 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $4100

Rate of Simple Interest (R) = 10% per annum

Amount (A) = $8200

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 = $8200 – $4100 = $4100

Thus, Simple Interest = $4100

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 × 4100}/_{4100 × 10}

= ⁴¹⁰⁰⁰⁰/₄₁₀₀₀

= 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) = $4100

Rate of Simple Interest (R) = 10% per annum

Simple Interest = $4100 (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 = 10% of Principal

= 10% of $4100

= ¹⁰/₁₀₀ × 4100

= ^{10 × 4100}/₁₀₀

= ⁴¹⁰⁰⁰/₁₀₀ = 410

Thus, simple Interest for 1 year = $410

Now,

∵ If the simple Interest is $410, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₁₀ years

∴ If the simple Interest is $4100, then the time = ¹/₄₁₀ × 4100 years

= ^{1 × 4100}/₄₁₀ years

= ⁴¹⁰⁰/₄₁₀ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) Calculate the amount due if Michael borrowed a sum of $3300 at 2% simple interest for 3 years.

(2) Paul had to pay $4982 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(3) Matthew took a loan of $6400 at the rate of 6% simple interest per annum. If he paid an amount of $9088 to clear the loan, then find the time period of the loan.

(4) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 9% simple interest.

(5) Donald took a loan of $7000 at the rate of 10% simple interest per annum. If he paid an amount of $12600 to clear the loan, then find the time period of the loan.

(6) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 3% simple interest?

(7) Calculate the amount due if Charles borrowed a sum of $3900 at 9% simple interest for 4 years.

(8) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 6% simple interest.

(9) Calculate the amount due if Linda borrowed a sum of $3350 at 10% simple interest for 4 years.

(10) Find the amount to be paid if Joseph borrowed a sum of $5700 at 8% simple interest for 8 years.