Question:
( 1 of 10 ) Calculate the amount due if Richard borrowed a sum of $3600 at 9% simple interest for 3 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3600
Correct Answer
$4572
Solution And Explanation
Solution
Given,
Principal (P) = $3600
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) = $3600 × 9% × 3
= $3600 ×9/100 × 3
= 3600 × 9 × 3/100
= 32400 × 3/100
= 97200/100
= $972
Thus, Simple Interest = $972
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 = $3600 + $972
= $4572
Thus, Amount to be paid = $4572 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 = $3600
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 3 years
Thus, Amount (A)
= $3600 + ($3600 × 9% × 3)
= $3600 + ($3600 ×9/100 × 3)
= $3600 + (3600 × 9 × 3/100)
= $3600 + (32400 × 3/100)
= $3600 + (97200/100)
= $3600 + $972 = $4572
Thus, Amount (A) to be paid = $4572 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 $3600, the simple interest in 1 year
= 9/100 × 3600
= 9 × 3600/100
= 32400/100 = $324
Thus, simple interest for 1 year = $324
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $324 × 3 = $972
Thus, Simple Interest (SI) = $972
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3600 + $972
= $4572
Thus, Amount to be paid = $4572 Answer
Similar Questions
(1) Calculate the amount due if Jennifer borrowed a sum of $3250 at 7% simple interest for 4 years.
(2) Betty took a loan of $6500 at the rate of 10% simple interest per annum. If he paid an amount of $11700 to clear the loan, then find the time period of the loan.
(3) Find the amount to be paid if Mary borrowed a sum of $5050 at 5% simple interest for 7 years.
(4) Find the amount to be paid if Jessica borrowed a sum of $5750 at 5% simple interest for 7 years.
(5) Margaret took a loan of $6700 at the rate of 7% simple interest per annum. If he paid an amount of $11390 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due if Robert borrowed a sum of $3100 at 2% simple interest for 3 years.
(7) Calculate the amount due if William borrowed a sum of $3500 at 9% simple interest for 4 years.
(8) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $7040 to clear the loan, then find the time period of the loan.
(9) How much loan did Steven borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7920 to clear it?
(10) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 4% simple interest.