Simple Interest
MCQs Math


Question:     Calculate the amount due if Michael borrowed a sum of $3300 at 6% simple interest for 3 years.


Correct Answer  $3894

Solution And Explanation

Solution

Given,

Principal (P) = $3300

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) = $3300 × 6% × 3

= $3300 ×6/100 × 3

= 3300 × 6 × 3/100

= 19800 × 3/100

= 59400/100

= $594

Thus, Simple Interest = $594

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 = $3300 + $594

= $3894

Thus, Amount to be paid = $3894 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 = $3300

Rate of Simple Interest (SI) or (R) = 6%

And, Time (t) = 3 years

Thus, Amount (A)

= $3300 + ($3300 × 6% × 3)

= $3300 + ($3300 ×6/100 × 3)

= $3300 + (3300 × 6 × 3/100)

= $3300 + (19800 × 3/100)

= $3300 + (59400/100)

= $3300 + $594 = $3894

Thus, Amount (A) to be paid = $3894 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 $3300, the simple interest in 1 year

= 6/100 × 3300

= 6 × 3300/100

= 19800/100 = $198

Thus, simple interest for 1 year = $198

Therefore, simple interest for 3 years

= Simple interest for 1 year × 3

= $198 × 3 = $594

Thus, Simple Interest (SI) = $594

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3300 + $594

= $3894

Thus, Amount to be paid = $3894 Answer


Similar Questions

(1) Christopher had to pay $4600 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(2) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 4% simple interest?

(3) Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 8% simple interest.

(4) Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $10200 to clear the loan, then find the time period of the loan.

(5) If Emily paid $5700 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(6) Donald took a loan of $7000 at the rate of 6% simple interest per annum. If he paid an amount of $10780 to clear the loan, then find the time period of the loan.

(7) Christopher took a loan of $6000 at the rate of 10% simple interest per annum. If he paid an amount of $11400 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due if James borrowed a sum of $3000 at 3% simple interest for 4 years.

(9) Barbara took a loan of $5100 at the rate of 7% simple interest per annum. If he paid an amount of $7242 to clear the loan, then find the time period of the loan.

(10) If Donald paid $5400 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.


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