Question:
( 1 of 10 ) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 10% simple interest?
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3050
Correct Answer
$3660
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 10%
Time (t) = 2 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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 × 10% × 2
= $3050 ×10/100 × 2
= 3050 × 10 × 2/100
= 30500 × 2/100
= 61000/100
= $610
Thus, Simple Interest = $610
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 + $610
= $3660
Thus, Amount to be paid = $3660 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) = 10%
And, Time (t) = 2 years
Thus, Amount (A)
= $3050 + ($3050 × 10% × 2)
= $3050 + ($3050 ×10/100 × 2)
= $3050 + (3050 × 10 × 2/100)
= $3050 + (30500 × 2/100)
= $3050 + (61000/100)
= $3050 + $610 = $3660
Thus, Amount (A) to be paid = $3660 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $3050, the simple interest in 1 year
= 10/100 × 3050
= 10 × 3050/100
= 30500/100 = $305
Thus, simple interest for 1 year = $305
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $305 × 2 = $610
Thus, Simple Interest (SI) = $610
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $610
= $3660
Thus, Amount to be paid = $3660 Answer
Similar Questions
(1) What amount does Karen have to pay after 5 years if he takes a loan of $3950 at 8% simple interest?
(2) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 6% simple interest.
(3) How much loan did Jeffrey borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9750 to clear it?
(4) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $6364 to clear the loan, then find the time period of the loan.
(5) What amount does William have to pay after 6 years if he takes a loan of $3500 at 9% simple interest?
(6) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 10% simple interest?
(7) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $7384 to clear the loan, then find the time period of the loan.
(8) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $7650 to clear the loan, then find the time period of the loan.
(9) James had to pay $3270 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(10) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 6% simple interest.