Simple Interest
MCQs Math


Question:     Calculate the amount due if Joseph borrowed a sum of $3700 at 3% simple interest for 3 years.


Correct Answer  $4033

Solution And Explanation

Solution

Given,

Principal (P) = $3700

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) = $3700 × 3% × 3

= $3700 ×3/100 × 3

= 3700 × 3 × 3/100

= 11100 × 3/100

= 33300/100

= $333

Thus, Simple Interest = $333

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 = $3700 + $333

= $4033

Thus, Amount to be paid = $4033 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 = $3700

Rate of Simple Interest (SI) or (R) = 3%

And, Time (t) = 3 years

Thus, Amount (A)

= $3700 + ($3700 × 3% × 3)

= $3700 + ($3700 ×3/100 × 3)

= $3700 + (3700 × 3 × 3/100)

= $3700 + (11100 × 3/100)

= $3700 + (33300/100)

= $3700 + $333 = $4033

Thus, Amount (A) to be paid = $4033 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 $3700, the simple interest in 1 year

= 3/100 × 3700

= 3 × 3700/100

= 11100/100 = $111

Thus, simple interest for 1 year = $111

Therefore, simple interest for 3 years

= Simple interest for 1 year × 3

= $111 × 3 = $333

Thus, Simple Interest (SI) = $333

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3700 + $333

= $4033

Thus, Amount to be paid = $4033 Answer


Similar Questions

(1) If Mark paid $4928 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.

(2) How much loan did Margaret borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7937.5 to clear it?

(3) Matthew took a loan of $6400 at the rate of 9% simple interest per annum. If he paid an amount of $12160 to clear the loan, then find the time period of the loan.

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

(5) In how much time a principal of $3000 will amount to $3750 at a simple interest of 5% per annum?

(6) Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $9548 to clear the loan, then find the time period of the loan.

(7) How much loan did Daniel borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7625 to clear it?

(8) How much loan did Susan borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7062.5 to clear it?

(9) Jessica had to pay $4087.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(10) How much loan did Anthony borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7245 to clear it?


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