Question:
( 1 of 10 ) Calculate the amount due if Joseph borrowed a sum of $3700 at 9% simple interest for 3 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3700
Correct Answer
$4699
Solution And Explanation
Solution
Given,
Principal (P) = $3700
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) = $3700 × 9% × 3
= $3700 ×9/100 × 3
= 3700 × 9 × 3/100
= 33300 × 3/100
= 99900/100
= $999
Thus, Simple Interest = $999
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 = $3700 + $999
= $4699
Thus, Amount to be paid = $4699 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 = $3700
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 3 years
Thus, Amount (A)
= $3700 + ($3700 × 9% × 3)
= $3700 + ($3700 ×9/100 × 3)
= $3700 + (3700 × 9 × 3/100)
= $3700 + (33300 × 3/100)
= $3700 + (99900/100)
= $3700 + $999 = $4699
Thus, Amount (A) to be paid = $4699 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 $3700, the simple interest in 1 year
= 9/100 × 3700
= 9 × 3700/100
= 33300/100 = $333
Thus, simple interest for 1 year = $333
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $333 × 3 = $999
Thus, Simple Interest (SI) = $999
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3700 + $999
= $4699
Thus, Amount to be paid = $4699 Answer
Similar Questions
(1) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $8600 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 6% simple interest.
(3) Calculate the amount due if Jennifer borrowed a sum of $3250 at 6% simple interest for 3 years.
(4) Mark took a loan of $6800 at the rate of 9% simple interest per annum. If he paid an amount of $11084 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 9% simple interest.
(6) Barbara took a loan of $5100 at the rate of 6% simple interest per annum. If he paid an amount of $7242 to clear the loan, then find the time period of the loan.
(7) Lisa took a loan of $6100 at the rate of 10% simple interest per annum. If he paid an amount of $11590 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if David borrowed a sum of $3400 at 2% simple interest for 3 years.
(9) Linda took a loan of $4700 at the rate of 8% simple interest per annum. If he paid an amount of $6956 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if William borrowed a sum of $5500 at 9% simple interest for 8 years.