Simple Interest
MCQs Math


Question:     What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 9% simple interest?


Correct Answer  $3953

Solution And Explanation

Solution

Given,

Principal (P) = $3350

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) = $3350 × 9% × 2

= $3350 ×9/100 × 2

= 3350 × 9 × 2/100

= 30150 × 2/100

= 60300/100

= $603

Thus, Simple Interest = $603

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 = $3350 + $603

= $3953

Thus, Amount to be paid = $3953 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 = $3350

Rate of Simple Interest (SI) or (R) = 9%

And, Time (t) = 2 years

Thus, Amount (A)

= $3350 + ($3350 × 9% × 2)

= $3350 + ($3350 ×9/100 × 2)

= $3350 + (3350 × 9 × 2/100)

= $3350 + (30150 × 2/100)

= $3350 + (60300/100)

= $3350 + $603 = $3953

Thus, Amount (A) to be paid = $3953 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 $3350, the simple interest in 1 year

= 9/100 × 3350

= 9 × 3350/100

= 30150/100 = $301.5

Thus, simple interest for 1 year = $301.5

Therefore, simple interest for 2 years

= Simple interest for 1 year × 2

= $301.5 × 2 = $603

Thus, Simple Interest (SI) = $603

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $603

= $3953

Thus, Amount to be paid = $3953 Answer


Similar Questions

(1) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 7% simple interest.

(2) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 6% simple interest.

(3) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 7% simple interest?

(4) Find the amount to be paid if Richard borrowed a sum of $5600 at 2% simple interest for 8 years.

(5) Calculate the amount due if Robert borrowed a sum of $3100 at 7% simple interest for 4 years.

(6) If Paul paid $5076 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(7) If Jessica paid $4350 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(8) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 3% simple interest.

(9) What amount does John have to pay after 5 years if he takes a loan of $3200 at 6% simple interest?

(10) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 7% simple interest.


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