Question:
What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 6% simple interest?
Correct Answer
$3752
Solution And Explanation
Solution
Given,
Principal (P) = $3350
Rate of Simple Interest (SI) = 6%
Time (t) = 2 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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) = $3350 × 6% × 2
= $3350 ×6/100 × 2
= 3350 × 6 × 2/100
= 20100 × 2/100
= 40200/100
= $402
Thus, Simple Interest = $402
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 = $3350 + $402
= $3752
Thus, Amount to be paid = $3752 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 = $3350
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 2 years
Thus, Amount (A)
= $3350 + ($3350 × 6% × 2)
= $3350 + ($3350 ×6/100 × 2)
= $3350 + (3350 × 6 × 2/100)
= $3350 + (20100 × 2/100)
= $3350 + (40200/100)
= $3350 + $402 = $3752
Thus, Amount (A) to be paid = $3752 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $3350, the simple interest in 1 year
= 6/100 × 3350
= 6 × 3350/100
= 20100/100 = $201
Thus, simple interest for 1 year = $201
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $201 × 2 = $402
Thus, Simple Interest (SI) = $402
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3350 + $402
= $3752
Thus, Amount to be paid = $3752 Answer
Similar Questions
(1) James took a loan of $4000 at the rate of 8% simple interest per annum. If he paid an amount of $6240 to clear the loan, then find the time period of the loan.
(2) Michael took a loan of $4600 at the rate of 6% simple interest per annum. If he paid an amount of $7360 to clear the loan, then find the time period of the loan.
(3) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $7216 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 4% simple interest for 8 years.
(5) In how much time a principal of $3050 will amount to $3538 at a simple interest of 4% per annum?
(6) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 7% simple interest?
(7) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 2% simple interest?
(8) How much loan did Kevin borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8165 to clear it?
(9) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 3% simple interest.
(10) Barbara took a loan of $5100 at the rate of 10% simple interest per annum. If he paid an amount of $8160 to clear the loan, then find the time period of the loan.