Question:
( 1 of 10 ) Calculate the amount due if Thomas borrowed a sum of $3800 at 3% simple interest for 3 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3800
Correct Answer
$4142
Solution And Explanation
Solution
Given,
Principal (P) = $3800
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) = $3800 × 3% × 3
= $3800 ×3/100 × 3
= 3800 × 3 × 3/100
= 11400 × 3/100
= 34200/100
= $342
Thus, Simple Interest = $342
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 = $3800 + $342
= $4142
Thus, Amount to be paid = $4142 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 = $3800
Rate of Simple Interest (SI) or (R) = 3%
And, Time (t) = 3 years
Thus, Amount (A)
= $3800 + ($3800 × 3% × 3)
= $3800 + ($3800 ×3/100 × 3)
= $3800 + (3800 × 3 × 3/100)
= $3800 + (11400 × 3/100)
= $3800 + (34200/100)
= $3800 + $342 = $4142
Thus, Amount (A) to be paid = $4142 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 $3800, the simple interest in 1 year
= 3/100 × 3800
= 3 × 3800/100
= 11400/100 = $114
Thus, simple interest for 1 year = $114
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $114 × 3 = $342
Thus, Simple Interest (SI) = $342
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3800 + $342
= $4142
Thus, Amount to be paid = $4142 Answer
Similar Questions
(1) Calculate the amount due if Michael borrowed a sum of $3300 at 6% simple interest for 3 years.
(2) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $5984 to clear the loan, then find the time period of the loan.
(3) David took a loan of $4800 at the rate of 10% simple interest per annum. If he paid an amount of $8160 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Charles borrowed a sum of $3900 at 3% simple interest for 4 years.
(5) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 7% simple interest?
(6) Calculate the amount due if Joseph borrowed a sum of $3700 at 4% simple interest for 3 years.
(7) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 3% simple interest.
(8) Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 5% simple interest.
(9) How much loan did Christopher borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7200 to clear it?
(10) Barbara took a loan of $5100 at the rate of 6% simple interest per annum. If he paid an amount of $6936 to clear the loan, then find the time period of the loan.