Question:
Calculate the amount due if Jennifer borrowed a sum of $3250 at 3% simple interest for 3 years.
Correct Answer
$3542.5
Solution And Explanation
Solution
Given,
Principal (P) = $3250
Rate of Simple Interest (SI) = 3%
Time (t) = 3 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% 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) = $3250 × 3% × 3
= $3250 ×3/100 × 3
= 3250 × 3 × 3/100
= 9750 × 3/100
= 29250/100
= $292.5
Thus, Simple Interest = $292.5
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 = $3250 + $292.5
= $3542.5
Thus, Amount to be paid = $3542.5 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 = $3250
Rate of Simple Interest (SI) or (R) = 3%
And, Time (t) = 3 years
Thus, Amount (A)
= $3250 + ($3250 × 3% × 3)
= $3250 + ($3250 ×3/100 × 3)
= $3250 + (3250 × 3 × 3/100)
= $3250 + (9750 × 3/100)
= $3250 + (29250/100)
= $3250 + $292.5 = $3542.5
Thus, Amount (A) to be paid = $3542.5 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 3%
This, means, $3 per $100 per year
∵ For $100, the simple interest for 1 year = $3
∴ For $1, the simple interest for 1 year = 3/100
∴ For $3250, the simple interest in 1 year
= 3/100 × 3250
= 3 × 3250/100
= 9750/100 = $97.5
Thus, simple interest for 1 year = $97.5
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $97.5 × 3 = $292.5
Thus, Simple Interest (SI) = $292.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3250 + $292.5
= $3542.5
Thus, Amount to be paid = $3542.5 Answer
Similar Questions
(1) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 6% simple interest?
(2) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 6% simple interest for 4 years.
(3) If Donald paid $4860 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(4) What amount will be due after 2 years if Kenneth borrowed a sum of $4000 at a 7% simple interest?
(5) Find the amount to be paid if Susan borrowed a sum of $5650 at 3% simple interest for 7 years.
(6) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $11780 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due after 9 years if Susan borrowed a sum of $5650 at a rate of 5% simple interest.
(8) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 10% simple interest?
(9) If Paul paid $5264 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(10) Find the amount to be paid if Mary borrowed a sum of $5050 at 9% simple interest for 7 years.