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) If Linda paid $4020 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(2) David had to pay $3604 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(3) Elizabeth took a loan of $4900 at the rate of 9% simple interest per annum. If he paid an amount of $8428 to clear the loan, then find the time period of the loan.
(4) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $7488 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 3% simple interest.
(6) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 9% simple interest.
(7) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 8% simple interest.
(8) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $12670 to clear the loan, then find the time period of the loan.
(9) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 6% simple interest?
(10) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 5% simple interest?