Question:
What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 9% simple interest?
Correct Answer
$3599
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 9%
Time (t) = 2 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $3050 × 9% × 2
= $3050 ×9/100 × 2
= 3050 × 9 × 2/100
= 27450 × 2/100
= 54900/100
= $549
Thus, Simple Interest = $549
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 = $3050 + $549
= $3599
Thus, Amount to be paid = $3599 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 = $3050
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 2 years
Thus, Amount (A)
= $3050 + ($3050 × 9% × 2)
= $3050 + ($3050 ×9/100 × 2)
= $3050 + (3050 × 9 × 2/100)
= $3050 + (27450 × 2/100)
= $3050 + (54900/100)
= $3050 + $549 = $3599
Thus, Amount (A) to be paid = $3599 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 9%
This, means, $9 per $100 per year
∵ For $100, the simple interest for 1 year = $9
∴ For $1, the simple interest for 1 year = 9/100
∴ For $3050, the simple interest in 1 year
= 9/100 × 3050
= 9 × 3050/100
= 27450/100 = $274.5
Thus, simple interest for 1 year = $274.5
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $274.5 × 2 = $549
Thus, Simple Interest (SI) = $549
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $549
= $3599
Thus, Amount to be paid = $3599 Answer
Similar Questions
(1) Calculate the amount due if Thomas borrowed a sum of $3800 at 3% simple interest for 4 years.
(2) Joseph took a loan of $5400 at the rate of 9% simple interest per annum. If he paid an amount of $8802 to clear the loan, then find the time period of the loan.
(3) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 7% simple interest?
(4) Richard had to pay $4032 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(5) How much loan did Charles borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7375 to clear it?
(6) Sandra took a loan of $6900 at the rate of 8% simple interest per annum. If he paid an amount of $12420 to clear the loan, then find the time period of the loan.
(7) Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $8288 to clear the loan, then find the time period of the loan.
(8) Barbara had to pay $3869.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(9) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 6% simple interest?
(10) Find the amount to be paid if Susan borrowed a sum of $5650 at 5% simple interest for 8 years.