Question:
What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 8% simple interest?
Correct Answer
$3828
Solution And Explanation
Solution
Given,
Principal (P) = $3300
Rate of Simple Interest (SI) = 8%
Time (t) = 2 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 8% simple interest means, Rate of Simple Interest (SI) is 8% 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 × 8% × 2
= $3300 ×8/100 × 2
= 3300 × 8 × 2/100
= 26400 × 2/100
= 52800/100
= $528
Thus, Simple Interest = $528
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 + $528
= $3828
Thus, Amount to be paid = $3828 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) = 8%
And, Time (t) = 2 years
Thus, Amount (A)
= $3300 + ($3300 × 8% × 2)
= $3300 + ($3300 ×8/100 × 2)
= $3300 + (3300 × 8 × 2/100)
= $3300 + (26400 × 2/100)
= $3300 + (52800/100)
= $3300 + $528 = $3828
Thus, Amount (A) to be paid = $3828 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 8%
This, means, $8 per $100 per year
∵ For $100, the simple interest for 1 year = $8
∴ For $1, the simple interest for 1 year = 8/100
∴ For $3300, the simple interest in 1 year
= 8/100 × 3300
= 8 × 3300/100
= 26400/100 = $264
Thus, simple interest for 1 year = $264
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $264 × 2 = $528
Thus, Simple Interest (SI) = $528
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3300 + $528
= $3828
Thus, Amount to be paid = $3828 Answer
Similar Questions
(1) If John paid $3584 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(2) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 9% simple interest.
(3) Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $9548 to clear the loan, then find the time period of the loan.
(4) How much loan did James borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5750 to clear it?
(5) Find the amount to be paid if Jessica borrowed a sum of $5750 at 6% simple interest for 8 years.
(6) Calculate the amount due if Barbara borrowed a sum of $3550 at 10% simple interest for 3 years.
(7) In how much time a principal of $3000 will amount to $3450 at a simple interest of 3% per annum?
(8) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 6% simple interest?
(9) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $10168 to clear the loan, then find the time period of the loan.
(10) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $12600 to clear the loan, then find the time period of the loan.