Question:
( 3 of 10 ) What amount will be due after 2 years if William borrowed a sum of $3250 at a 7% simple interest?
(A) 11 19/46 days or 11.413 days
(B) 22 19/46 days or 22.413 days
(C) 46 days
(D) 23 days
You selected
$3250
Correct Answer
$3705
Solution And Explanation
Solution
Given,
Principal (P) = $3250
Rate of Simple Interest (SI) = 7%
Time (t) = 2 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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) = $3250 × 7% × 2
= $3250 ×7/100 × 2
= 3250 × 7 × 2/100
= 22750 × 2/100
= 45500/100
= $455
Thus, Simple Interest = $455
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 = $3250 + $455
= $3705
Thus, Amount to be paid = $3705 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 = $3250
Rate of Simple Interest (SI) or (R) = 7%
And, Time (t) = 2 years
Thus, Amount (A)
= $3250 + ($3250 × 7% × 2)
= $3250 + ($3250 ×7/100 × 2)
= $3250 + (3250 × 7 × 2/100)
= $3250 + (22750 × 2/100)
= $3250 + (45500/100)
= $3250 + $455 = $3705
Thus, Amount (A) to be paid = $3705 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 7%
This, means, $7 per $100 per year
∵ For $100, the simple interest for 1 year = $7
∴ For $1, the simple interest for 1 year = 7/100
∴ For $3250, the simple interest in 1 year
= 7/100 × 3250
= 7 × 3250/100
= 22750/100 = $227.5
Thus, simple interest for 1 year = $227.5
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $227.5 × 2 = $455
Thus, Simple Interest (SI) = $455
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3250 + $455
= $3705
Thus, Amount to be paid = $3705 Answer
Similar Questions
(1) Linda took a loan of $4700 at the rate of 9% simple interest per annum. If he paid an amount of $8930 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due if David borrowed a sum of $3400 at 9% simple interest for 3 years.
(3) How much loan did Jason borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9240 to clear it?
(4) How much loan did Edward borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9500 to clear it?
(5) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $11160 to clear the loan, then find the time period of the loan.
(6) If Joseph paid $4292 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(7) What amount does Elizabeth have to pay after 6 years if he takes a loan of $3450 at 6% simple interest?
(8) How much loan did Susan borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7062.5 to clear it?
(9) If Michelle paid $5346 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(10) How much loan did Sandra borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7417.5 to clear it?