Question:
( 1 of 10 ) Calculate the amount due if Susan borrowed a sum of $3650 at 6% simple interest for 3 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3650
Correct Answer
$4307
Solution And Explanation
Solution
Given,
Principal (P) = $3650
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) = $3650 × 6% × 3
= $3650 ×6/100 × 3
= 3650 × 6 × 3/100
= 21900 × 3/100
= 65700/100
= $657
Thus, Simple Interest = $657
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 = $3650 + $657
= $4307
Thus, Amount to be paid = $4307 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 = $3650
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 3 years
Thus, Amount (A)
= $3650 + ($3650 × 6% × 3)
= $3650 + ($3650 ×6/100 × 3)
= $3650 + (3650 × 6 × 3/100)
= $3650 + (21900 × 3/100)
= $3650 + (65700/100)
= $3650 + $657 = $4307
Thus, Amount (A) to be paid = $4307 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 $3650, the simple interest in 1 year
= 6/100 × 3650
= 6 × 3650/100
= 21900/100 = $219
Thus, simple interest for 1 year = $219
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $219 × 3 = $657
Thus, Simple Interest (SI) = $657
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3650 + $657
= $4307
Thus, Amount to be paid = $4307 Answer
Similar Questions
(1) Charles had to pay $4251 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(2) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 6% simple interest.
(3) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 6% simple interest?
(4) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $9512 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 3% simple interest for 7 years.
(6) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 4% simple interest.
(7) Find the amount to be paid if Michael borrowed a sum of $5300 at 2% simple interest for 7 years.
(8) Richard took a loan of $5200 at the rate of 9% simple interest per annum. If he paid an amount of $9412 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 9% simple interest.
(10) Find the amount to be paid if Michael borrowed a sum of $5300 at 4% simple interest for 8 years.