Simple Interest
MCQs Math


Question:     What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 5% simple interest?


Correct Answer  $3630

Solution And Explanation

Solution

Given,

Principal (P) = $3300

Rate of Simple Interest (SI) = 5%

Time (t) = 2 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 5% simple interest means, Rate of Simple Interest (SI) is 5% 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) = $3300 × 5% × 2

= $3300 ×5/100 × 2

= 3300 × 5 × 2/100

= 16500 × 2/100

= 33000/100

= $330

Thus, Simple Interest = $330

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 = $3300 + $330

= $3630

Thus, Amount to be paid = $3630 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 = $3300

Rate of Simple Interest (SI) or (R) = 5%

And, Time (t) = 2 years

Thus, Amount (A)

= $3300 + ($3300 × 5% × 2)

= $3300 + ($3300 ×5/100 × 2)

= $3300 + (3300 × 5 × 2/100)

= $3300 + (16500 × 2/100)

= $3300 + (33000/100)

= $3300 + $330 = $3630

Thus, Amount (A) to be paid = $3630 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 5%

This, means, $5 per $100 per year

∵ For $100, the simple interest for 1 year = $5

∴ For $1, the simple interest for 1 year = 5/100

∴ For $3300, the simple interest in 1 year

= 5/100 × 3300

= 5 × 3300/100

= 16500/100 = $165

Thus, simple interest for 1 year = $165

Therefore, simple interest for 2 years

= Simple interest for 1 year × 2

= $165 × 2 = $330

Thus, Simple Interest (SI) = $330

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3300 + $330

= $3630

Thus, Amount to be paid = $3630 Answer


Similar Questions

(1) Find the amount to be paid if Mary borrowed a sum of $5050 at 2% simple interest for 7 years.

(2) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $7700 to clear the loan, then find the time period of the loan.

(3) Emily had to pay $5320 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.

(4) Find the amount to be paid if Patricia borrowed a sum of $5150 at 3% simple interest for 7 years.

(5) If John borrowed $3200 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.

(6) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 6% simple interest?

(7) Calculate the amount due if Jennifer borrowed a sum of $3250 at 7% simple interest for 4 years.

(8) Sarah took a loan of $5700 at the rate of 8% simple interest per annum. If he paid an amount of $9804 to clear the loan, then find the time period of the loan.

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

(10) Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $9690 to clear the loan, then find the time period of the loan.


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