Question:
( 1 of 10 ) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 6% simple interest?
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3450
Correct Answer
$3864
Solution And Explanation
Solution
Given,
Principal (P) = $3450
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) = $3450 × 6% × 2
= $3450 ×6/100 × 2
= 3450 × 6 × 2/100
= 20700 × 2/100
= 41400/100
= $414
Thus, Simple Interest = $414
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 = $3450 + $414
= $3864
Thus, Amount to be paid = $3864 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 = $3450
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 2 years
Thus, Amount (A)
= $3450 + ($3450 × 6% × 2)
= $3450 + ($3450 ×6/100 × 2)
= $3450 + (3450 × 6 × 2/100)
= $3450 + (20700 × 2/100)
= $3450 + (41400/100)
= $3450 + $414 = $3864
Thus, Amount (A) to be paid = $3864 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 $3450, the simple interest in 1 year
= 6/100 × 3450
= 6 × 3450/100
= 20700/100 = $207
Thus, simple interest for 1 year = $207
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $207 × 2 = $414
Thus, Simple Interest (SI) = $414
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3450 + $414
= $3864
Thus, Amount to be paid = $3864 Answer
Similar Questions
(1) Find the amount to be paid if Barbara borrowed a sum of $5550 at 2% simple interest for 7 years.
(2) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 9% simple interest?
(3) What amount will be due after 2 years if William borrowed a sum of $3250 at a 6% simple interest?
(4) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 8% simple interest.
(5) Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $11041 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 9 years if Susan borrowed a sum of $5650 at a rate of 3% simple interest.
(7) Find the amount to be paid if Thomas borrowed a sum of $5800 at 2% simple interest for 8 years.
(8) Sandra took a loan of $6900 at the rate of 8% simple interest per annum. If he paid an amount of $10212 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 10% simple interest for 8 years.
(10) If David paid $3808 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.