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) Patricia took a loan of $4300 at the rate of 9% simple interest per annum. If he paid an amount of $8170 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 9% simple interest.
(3) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 6% simple interest for 7 years.
(4) What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 7% simple interest?
(5) Anthony had to pay $4558 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(6) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 6% simple interest?
(7) Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 10% simple interest.
(8) Find the amount to be paid if Patricia borrowed a sum of $5150 at 8% simple interest for 8 years.
(9) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 5% simple interest?
(10) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 10% simple interest.