Question:
What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 10% simple interest?
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) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 4% simple interest.
(2) Elizabeth had to pay $3657 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(3) Find the amount to be paid if Richard borrowed a sum of $5600 at 10% simple interest for 7 years.
(4) Find the amount to be paid if Robert borrowed a sum of $5100 at 2% simple interest for 8 years.
(5) If Steven paid $5152 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(6) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 10% simple interest?
(7) Find the amount to be paid if Christopher borrowed a sum of $6000 at 5% simple interest for 7 years.
(8) If Andrew paid $5568 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) Michael took a loan of $4600 at the rate of 8% simple interest per annum. If he paid an amount of $8280 to clear the loan, then find the time period of the loan.
(10) How much loan did John borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6240 to clear it?