Simple Interest
MCQs Math


Question:     Calculate the amount due if Mary borrowed a sum of $3050 at 2% simple interest for 3 years.


Correct Answer  $3233

Solution And Explanation

Solution

Given,

Principal (P) = $3050

Rate of Simple Interest (SI) = 2%

Time (t) = 3 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 2% simple interest means, Rate of Simple Interest (SI) is 2% 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 × 2% × 3

= $3050 ×2/100 × 3

= 3050 × 2 × 3/100

= 6100 × 3/100

= 18300/100

= $183

Thus, Simple Interest = $183

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 + $183

= $3233

Thus, Amount to be paid = $3233 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) = 2%

And, Time (t) = 3 years

Thus, Amount (A)

= $3050 + ($3050 × 2% × 3)

= $3050 + ($3050 ×2/100 × 3)

= $3050 + (3050 × 2 × 3/100)

= $3050 + (6100 × 3/100)

= $3050 + (18300/100)

= $3050 + $183 = $3233

Thus, Amount (A) to be paid = $3233 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 2%

This, means, $2 per $100 per year

∵ For $100, the simple interest for 1 year = $2

∴ For $1, the simple interest for 1 year = 2/100

∴ For $3050, the simple interest in 1 year

= 2/100 × 3050

= 2 × 3050/100

= 6100/100 = $61

Thus, simple interest for 1 year = $61

Therefore, simple interest for 3 years

= Simple interest for 1 year × 3

= $61 × 3 = $183

Thus, Simple Interest (SI) = $183

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3050 + $183

= $3233

Thus, Amount to be paid = $3233 Answer


Similar Questions

(1) Calculate the amount due if Barbara borrowed a sum of $3550 at 10% simple interest for 3 years.

(2) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 4% simple interest.

(3) How much loan did Matthew borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7440 to clear it?

(4) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 7% simple interest?

(5) Calculate the amount due if John borrowed a sum of $3200 at 4% simple interest for 3 years.

(6) What amount will be due after 2 years if Matthew borrowed a sum of $3600 at a 4% simple interest?

(7) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 3% simple interest.

(8) Richard took a loan of $5200 at the rate of 8% simple interest per annum. If he paid an amount of $7696 to clear the loan, then find the time period of the loan.

(9) How much loan did David borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $5940 to clear it?

(10) What amount will be due after 2 years if Mark borrowed a sum of $3700 at a 10% simple interest?


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