Question:
( 2 of 10 ) If James borrowed $3000 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(A) 258.39 km
(B) 215.33 km
(C) 172.26 km
(D) 137.81 km
You selected
$3000
Correct Answer
$3120
Solution And Explanation
Solution
Given,
Principal (P) = $3000
Rate of Simple Interest (SI) = 2%
Time (t) = 2 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 2% simple interest means, Rate of Simple Interest (SI) is 2% per annum.
Method (1) Using Formula
Calculation of Simple Interest
Formula to Calculate Simple Interest
Simple Interest (SI) = Principal × Rate × Time
Thus, Simple Interest (SI) = $3000 × 2% × 2
= $3000 ×2/100 × 2
= 3000 × 2 × 2/100
= 6000 × 2/100
= 12000/100
= $120
Thus, Simple Interest = $120
Calculation of Amount
The total money paid to the lender by a borrower is called the Amount.
In other words, sum of priciple and interest is called the Amount.
Formula to Calculate the Amount
Amount = Principal + Interest
Thus, Amount = $3000 + $120
= $3120
Thus, Amount to be paid = $3120 Answer
Method (2)
Calculation of Amount when Principal, Rate of Simple Interest and Time are given
Calculation of Amount directly using Principal, SI, and Time
Formula to calculate the Amount
Amount (A) = Principal (P) + Principal(P) × Rate of Interest (SI) × Time (t)
⇒ A = P + PRT
Here in the question, P = $3000
Rate of Simple Interest (SI) or (R) = 2%
And, Time (t) = 2 years
Thus, Amount (A)
= $3000 + ($3000 × 2% × 2)
= $3000 + ($3000 ×2/100 × 2)
= $3000 + (3000 × 2 × 2/100)
= $3000 + (6000 × 2/100)
= $3000 + (12000/100)
= $3000 + $120 = $3120
Thus, Amount (A) to be paid = $3120 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 2%
This, means, $2 per $100 per year
∵ For $100, the simple interest in 1 year = $2
∴ For $1, the simple interest in 1 year = 2/100
∴ For $3000, the simple interest in 1 year
= 2/100 × 3000
= 2 × 3000/100
= 6000/100 = $60
Thus, simple interest in 1 year = $60
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $60 × 2 = $120
Thus, Simple Interest (SI) = $120
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3000 + $120
= $3120
Thus, Amount to be paid = $3120 Answer
Similar Questions
(1) What amount does William have to pay after 6 years if he takes a loan of $3500 at 10% simple interest?
(2) How much loan did Donna borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8562.5 to clear it?
(3) What amount does John have to pay after 5 years if he takes a loan of $3200 at 9% simple interest?
(4) Calculate the amount due if Thomas borrowed a sum of $3800 at 9% simple interest for 4 years.
(5) Mark took a loan of $6800 at the rate of 9% simple interest per annum. If he paid an amount of $10472 to clear the loan, then find the time period of the loan.
(6) Jessica took a loan of $5500 at the rate of 6% simple interest per annum. If he paid an amount of $7480 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due if Michael borrowed a sum of $3300 at 10% simple interest for 4 years.
(8) Richard took a loan of $5200 at the rate of 7% simple interest per annum. If he paid an amount of $8476 to clear the loan, then find the time period of the loan.
(9) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 4% simple interest?
(10) Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $8316 to clear the loan, then find the time period of the loan.