Question:
Calculate the amount due if Linda borrowed a sum of $3350 at 6% simple interest for 3 years.
Correct Answer
$3953
Solution And Explanation
Solution
Given,
Principal (P) = $3350
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) = $3350 × 6% × 3
= $3350 ×6/100 × 3
= 3350 × 6 × 3/100
= 20100 × 3/100
= 60300/100
= $603
Thus, Simple Interest = $603
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 = $3350 + $603
= $3953
Thus, Amount to be paid = $3953 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 = $3350
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 3 years
Thus, Amount (A)
= $3350 + ($3350 × 6% × 3)
= $3350 + ($3350 ×6/100 × 3)
= $3350 + (3350 × 6 × 3/100)
= $3350 + (20100 × 3/100)
= $3350 + (60300/100)
= $3350 + $603 = $3953
Thus, Amount (A) to be paid = $3953 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 $3350, the simple interest in 1 year
= 6/100 × 3350
= 6 × 3350/100
= 20100/100 = $201
Thus, simple interest for 1 year = $201
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $201 × 3 = $603
Thus, Simple Interest (SI) = $603
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3350 + $603
= $3953
Thus, Amount to be paid = $3953 Answer
Similar Questions
(1) Elizabeth had to pay $3967.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(2) Calculate the amount due if Jennifer borrowed a sum of $3250 at 6% simple interest for 3 years.
(3) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 5% simple interest?
(4) John took a loan of $4400 at the rate of 7% simple interest per annum. If he paid an amount of $7480 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if Karen borrowed a sum of $3950 at 2% simple interest for 4 years.
(6) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $5848 to clear the loan, then find the time period of the loan.
(7) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 4% simple interest?
(8) Calculate the amount due if Patricia borrowed a sum of $3150 at 10% simple interest for 3 years.
(9) Christopher took a loan of $6000 at the rate of 6% simple interest per annum. If he paid an amount of $8520 to clear the loan, then find the time period of the loan.
(10) Donald took a loan of $7000 at the rate of 9% simple interest per annum. If he paid an amount of $12670 to clear the loan, then find the time period of the loan.