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) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 9% simple interest?
(2) Sandra took a loan of $6900 at the rate of 10% simple interest per annum. If he paid an amount of $13110 to clear the loan, then find the time period of the loan.
(3) How much loan did Sharon borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8525 to clear it?
(4) Find the amount to be paid if John borrowed a sum of $5200 at 2% simple interest for 8 years.
(5) If Robert paid $3348 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(6) If Robert paid $3720 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(7) Calculate the amount due after 10 years if Richard borrowed a sum of $5600 at a rate of 2% simple interest.
(8) Calculate the amount due if Joseph borrowed a sum of $3700 at 6% simple interest for 3 years.
(9) Lisa took a loan of $6100 at the rate of 10% simple interest per annum. If he paid an amount of $10980 to clear the loan, then find the time period of the loan.
(10) Sandra took a loan of $6900 at the rate of 8% simple interest per annum. If he paid an amount of $11316 to clear the loan, then find the time period of the loan.