Simple Interest
Math MCQs

Question :    Christopher took a loan of $6000 at the rate of 10% simple interest per annum. If he paid an amount of $12000 to clear the loan, then find the time period of the loan.

Correct Answer  10

Solution & Explanation

Solution

Given,

Principal (P) = $6000

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

Amount (A) = $12000

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 = $12000 – $6000 = $6000

Thus, Simple Interest = $6000

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 × 6000}/_{6000 × 10}

= ⁶⁰⁰⁰⁰⁰/₆₀₀₀₀

= 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) = $6000

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

Simple Interest = $6000 (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 $6000

= ¹⁰/₁₀₀ × 6000

= ^{10 × 6000}/₁₀₀

= ⁶⁰⁰⁰⁰/₁₀₀ = 600

Thus, simple Interest for 1 year = $600

Now,

∵ If the simple Interest is $600, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₀₀ years

∴ If the simple Interest is $6000, then the time = ¹/₆₀₀ × 6000 years

= ^{1 × 6000}/₆₀₀ years

= ⁶⁰⁰⁰/₆₀₀ = 10 years

Thus, time (T) = 10 years Answer

Similar Questions

(1) How much loan did Joshua borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8625 to clear it?

(2) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 10% simple interest.

(3) Nancy took a loan of $6300 at the rate of 8% simple interest per annum. If he paid an amount of $9828 to clear the loan, then find the time period of the loan.

(4) Thomas took a loan of $5600 at the rate of 9% simple interest per annum. If he paid an amount of $8624 to clear the loan, then find the time period of the loan.

(5) Calculate the amount due if Linda borrowed a sum of $3350 at 5% simple interest for 3 years.

(6) Find the amount to be paid if Karen borrowed a sum of $5950 at 4% simple interest for 7 years.

(7) Michael took a loan of $4600 at the rate of 7% simple interest per annum. If he paid an amount of $7176 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 6% simple interest for 3 years.

(9) Find the amount to be paid if Michael borrowed a sum of $5300 at 3% simple interest for 8 years.

(10) Calculate the amount due if James borrowed a sum of $3000 at 8% simple interest for 4 years.