Question:
Calculate the amount due if Mary borrowed a sum of $3050 at 6% simple interest for 3 years.
Correct Answer
$3599
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 6%
Time (t) = 3 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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 × 6% × 3
= $3050 ×6/100 × 3
= 3050 × 6 × 3/100
= 18300 × 3/100
= 54900/100
= $549
Thus, Simple Interest = $549
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 + $549
= $3599
Thus, Amount to be paid = $3599 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) = 6%
And, Time (t) = 3 years
Thus, Amount (A)
= $3050 + ($3050 × 6% × 3)
= $3050 + ($3050 ×6/100 × 3)
= $3050 + (3050 × 6 × 3/100)
= $3050 + (18300 × 3/100)
= $3050 + (54900/100)
= $3050 + $549 = $3599
Thus, Amount (A) to be paid = $3599 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $3050, the simple interest in 1 year
= 6/100 × 3050
= 6 × 3050/100
= 18300/100 = $183
Thus, simple interest for 1 year = $183
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $183 × 3 = $549
Thus, Simple Interest (SI) = $549
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $549
= $3599
Thus, Amount to be paid = $3599 Answer
Similar Questions
(1) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $10626 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if John borrowed a sum of $5200 at 4% simple interest for 7 years.
(3) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 6% simple interest?
(4) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 2% simple interest.
(5) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $7498 to clear the loan, then find the time period of the loan.
(6) Robert took a loan of $4200 at the rate of 9% simple interest per annum. If he paid an amount of $7224 to clear the loan, then find the time period of the loan.
(7) Sarah took a loan of $5700 at the rate of 6% simple interest per annum. If he paid an amount of $8094 to clear the loan, then find the time period of the loan.
(8) What amount does John have to pay after 6 years if he takes a loan of $3200 at 10% simple interest?
(9) Find the amount to be paid if David borrowed a sum of $5400 at 6% simple interest for 7 years.
(10) James took a loan of $4000 at the rate of 10% simple interest per annum. If he paid an amount of $6400 to clear the loan, then find the time period of the loan.