Question:
What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 10% simple interest?
Correct Answer
$4020
Solution And Explanation
Solution
Given,
Principal (P) = $3350
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) = $3350 × 10% × 2
= $3350 ×10/100 × 2
= 3350 × 10 × 2/100
= 33500 × 2/100
= 67000/100
= $670
Thus, Simple Interest = $670
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 + $670
= $4020
Thus, Amount to be paid = $4020 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) = 10%
And, Time (t) = 2 years
Thus, Amount (A)
= $3350 + ($3350 × 10% × 2)
= $3350 + ($3350 ×10/100 × 2)
= $3350 + (3350 × 10 × 2/100)
= $3350 + (33500 × 2/100)
= $3350 + (67000/100)
= $3350 + $670 = $4020
Thus, Amount (A) to be paid = $4020 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 $3350, the simple interest in 1 year
= 10/100 × 3350
= 10 × 3350/100
= 33500/100 = $335
Thus, simple interest for 1 year = $335
Therefore, simple interest for 2 years
= Simple interest for 1 year × 2
= $335 × 2 = $670
Thus, Simple Interest (SI) = $670
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3350 + $670
= $4020
Thus, Amount to be paid = $4020 Answer
Similar Questions
(1) Find the amount to be paid if Joseph borrowed a sum of $5700 at 5% simple interest for 8 years.
(2) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 8% simple interest?
(3) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 4% simple interest?
(4) Find the amount to be paid if Richard borrowed a sum of $5600 at 5% simple interest for 7 years.
(5) Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $9291 to clear the loan, then find the time period of the loan.
(6) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 2% simple interest for 8 years.
(7) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 3% simple interest for 8 years.
(8) Joseph took a loan of $5400 at the rate of 9% simple interest per annum. If he paid an amount of $8316 to clear the loan, then find the time period of the loan.
(9) Charles had to pay $4251 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(10) In how much time a principal of $3050 will amount to $3172 at a simple interest of 2% per annum?