Question:
What amount will be due after 2 years if William borrowed a sum of $3250 at a 9% simple interest?
Correct Answer
$3835
Solution And Explanation
Solution
Given,
Principal (P) = $3250
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) = $3250 × 9% × 2
= $3250 ×9/100 × 2
= 3250 × 9 × 2/100
= 29250 × 2/100
= 58500/100
= $585
Thus, Simple Interest = $585
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 + $585
= $3835
Thus, Amount to be paid = $3835 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) = 9%
And, Time (t) = 2 years
Thus, Amount (A)
= $3250 + ($3250 × 9% × 2)
= $3250 + ($3250 ×9/100 × 2)
= $3250 + (3250 × 9 × 2/100)
= $3250 + (29250 × 2/100)
= $3250 + (58500/100)
= $3250 + $585 = $3835
Thus, Amount (A) to be paid = $3835 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 $3250, the simple interest in 1 year
= 9/100 × 3250
= 9 × 3250/100
= 29250/100 = $292.5
Thus, simple interest for 1 year = $292.5
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $292.5 × 2 = $585
Thus, Simple Interest (SI) = $585
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3250 + $585
= $3835
Thus, Amount to be paid = $3835 Answer
Similar Questions
(1) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 7% simple interest?
(2) Find the amount to be paid if Sarah borrowed a sum of $5850 at 2% simple interest for 7 years.
(3) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 7% simple interest.
(4) What amount does James have to pay after 6 years if he takes a loan of $3000 at 5% simple interest?
(5) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 2% simple interest.
(6) Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $7650 to clear the loan, then find the time period of the loan.
(7) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 6% simple interest?
(8) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 9% simple interest.
(9) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 9% simple interest?
(10) Find the amount to be paid if Sarah borrowed a sum of $5850 at 10% simple interest for 8 years.