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) Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $9516 to clear the loan, then find the time period of the loan.
(2) Joseph took a loan of $5400 at the rate of 7% simple interest per annum. If he paid an amount of $9180 to clear the loan, then find the time period of the loan.
(3) Christopher took a loan of $6000 at the rate of 6% simple interest per annum. If he paid an amount of $8520 to clear the loan, then find the time period of the loan.
(4) In how much time a principal of $3200 will amount to $3712 at a simple interest of 4% per annum?
(5) What amount will be due after 2 years if John borrowed a sum of $3100 at a 5% simple interest?
(6) Find the amount to be paid if Jessica borrowed a sum of $5750 at 10% simple interest for 7 years.
(7) Find the amount to be paid if Robert borrowed a sum of $5100 at 10% simple interest for 8 years.
(8) Linda had to pay $3752 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(9) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $8692 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Robert borrowed a sum of $5100 at 9% simple interest for 8 years.