Simple Interest
Math MCQs

Question :    Robert took a loan of $4200 at the rate of 10% simple interest per annum. If he paid an amount of $8400 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $4200

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

Amount (A) = $8400

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 = $8400 – $4200 = $4200

Thus, Simple Interest = $4200

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 × 4200}/_{4200 × 10}

= ⁴²⁰⁰⁰⁰/₄₂₀₀₀

= 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) = $4200

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

Simple Interest = $4200 (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 $4200

= ¹⁰/₁₀₀ × 4200

= ^{10 × 4200}/₁₀₀

= ⁴²⁰⁰⁰/₁₀₀ = 420

Thus, simple Interest for 1 year = $420

Now,

∵ If the simple Interest is $420, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₄₂₀ years

∴ If the simple Interest is $4200, then the time = ¹/₄₂₀ × 4200 years

= ^{1 × 4200}/₄₂₀ years

= ⁴²⁰⁰/₄₂₀ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) How much loan did Patricia borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6437.5 to clear it?

(2) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 9% simple interest?

(3) Calculate the amount due if Jessica borrowed a sum of $3750 at 2% simple interest for 4 years.

(4) Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $7952 to clear the loan, then find the time period of the loan.

(5) David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $7392 to clear the loan, then find the time period of the loan.

(6) If Christopher paid $4800 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(7) John took a loan of $4400 at the rate of 7% simple interest per annum. If he paid an amount of $6248 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 4% simple interest.

(9) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 4% simple interest for 3 years.

(10) Find the amount to be paid if Susan borrowed a sum of $5650 at 10% simple interest for 7 years.