Question:
( 3 of 10 ) Calculate the amount due if Barbara borrowed a sum of $3550 at 5% simple interest for 3 years.
(A) 11 19/46 days or 11.413 days
(B) 22 19/46 days or 22.413 days
(C) 46 days
(D) 23 days
You selected
$3550
Correct Answer
$4082.5
Solution And Explanation
Solution
Given,
Principal (P) = $3550
Rate of Simple Interest (SI) = 5%
Time (t) = 3 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 5% simple interest means, Rate of Simple Interest (SI) is 5% 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) = $3550 × 5% × 3
= $3550 ×5/100 × 3
= 3550 × 5 × 3/100
= 17750 × 3/100
= 53250/100
= $532.5
Thus, Simple Interest = $532.5
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 = $3550 + $532.5
= $4082.5
Thus, Amount to be paid = $4082.5 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 = $3550
Rate of Simple Interest (SI) or (R) = 5%
And, Time (t) = 3 years
Thus, Amount (A)
= $3550 + ($3550 × 5% × 3)
= $3550 + ($3550 ×5/100 × 3)
= $3550 + (3550 × 5 × 3/100)
= $3550 + (17750 × 3/100)
= $3550 + (53250/100)
= $3550 + $532.5 = $4082.5
Thus, Amount (A) to be paid = $4082.5 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 5%
This, means, $5 per $100 per year
∵ For $100, the simple interest for 1 year = $5
∴ For $1, the simple interest for 1 year = 5/100
∴ For $3550, the simple interest in 1 year
= 5/100 × 3550
= 5 × 3550/100
= 17750/100 = $177.5
Thus, simple interest for 1 year = $177.5
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $177.5 × 3 = $532.5
Thus, Simple Interest (SI) = $532.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3550 + $532.5
= $4082.5
Thus, Amount to be paid = $4082.5 Answer
Similar Questions
(1) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 4% simple interest?
(2) Sandra had to pay $4717 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(3) Calculate the amount due if Mary borrowed a sum of $3050 at 7% simple interest for 4 years.
(4) Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $7668 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if Jennifer borrowed a sum of $3250 at 2% simple interest for 4 years.
(6) Calculate the amount due if Michael borrowed a sum of $3300 at 10% simple interest for 3 years.
(7) Nancy took a loan of $6300 at the rate of 9% simple interest per annum. If he paid an amount of $11970 to clear the loan, then find the time period of the loan.
(8) What amount will be due after 2 years if Matthew borrowed a sum of $3600 at a 9% simple interest?
(9) Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 2% simple interest.
(10) Matthew took a loan of $6400 at the rate of 7% simple interest per annum. If he paid an amount of $9536 to clear the loan, then find the time period of the loan.