Question:
Calculate the amount due if Robert borrowed a sum of $3100 at 9% simple interest for 3 years.
Correct Answer
$3937
Solution And Explanation
Solution
Given,
Principal (P) = $3100
Rate of Simple Interest (SI) = 9%
Time (t) = 3 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $3100 × 9% × 3
= $3100 ×9/100 × 3
= 3100 × 9 × 3/100
= 27900 × 3/100
= 83700/100
= $837
Thus, Simple Interest = $837
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 = $3100 + $837
= $3937
Thus, Amount to be paid = $3937 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 = $3100
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 3 years
Thus, Amount (A)
= $3100 + ($3100 × 9% × 3)
= $3100 + ($3100 ×9/100 × 3)
= $3100 + (3100 × 9 × 3/100)
= $3100 + (27900 × 3/100)
= $3100 + (83700/100)
= $3100 + $837 = $3937
Thus, Amount (A) to be paid = $3937 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 9%
This, means, $9 per $100 per year
∵ For $100, the simple interest for 1 year = $9
∴ For $1, the simple interest for 1 year = 9/100
∴ For $3100, the simple interest in 1 year
= 9/100 × 3100
= 9 × 3100/100
= 27900/100 = $279
Thus, simple interest for 1 year = $279
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $279 × 3 = $837
Thus, Simple Interest (SI) = $837
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3100 + $837
= $3937
Thus, Amount to be paid = $3937 Answer
Similar Questions
(1) Calculate the amount due if Jessica borrowed a sum of $3750 at 8% simple interest for 4 years.
(2) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 5% simple interest?
(3) How much loan did Charles borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6785 to clear it?
(4) Calculate the amount due if Jennifer borrowed a sum of $3250 at 7% simple interest for 3 years.
(5) Calculate the amount due if Richard borrowed a sum of $3600 at 4% simple interest for 4 years.
(6) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $11084 to clear the loan, then find the time period of the loan.
(7) Thomas took a loan of $5600 at the rate of 7% simple interest per annum. If he paid an amount of $8344 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if Jennifer borrowed a sum of $3250 at 10% simple interest for 3 years.
(9) Calculate the amount due after 10 years if James borrowed a sum of $5000 at a rate of 5% simple interest.
(10) Michael took a loan of $4600 at the rate of 7% simple interest per annum. If he paid an amount of $7498 to clear the loan, then find the time period of the loan.