Question:
( 1 of 10 ) Calculate the amount due if Sarah borrowed a sum of $3850 at 9% simple interest for 3 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3850
Correct Answer
$4889.5
Solution And Explanation
Solution
Given,
Principal (P) = $3850
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) = $3850 × 9% × 3
= $3850 ×9/100 × 3
= 3850 × 9 × 3/100
= 34650 × 3/100
= 103950/100
= $1039.5
Thus, Simple Interest = $1039.5
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 = $3850 + $1039.5
= $4889.5
Thus, Amount to be paid = $4889.5 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 = $3850
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 3 years
Thus, Amount (A)
= $3850 + ($3850 × 9% × 3)
= $3850 + ($3850 ×9/100 × 3)
= $3850 + (3850 × 9 × 3/100)
= $3850 + (34650 × 3/100)
= $3850 + (103950/100)
= $3850 + $1039.5 = $4889.5
Thus, Amount (A) to be paid = $4889.5 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 $3850, the simple interest in 1 year
= 9/100 × 3850
= 9 × 3850/100
= 34650/100 = $346.5
Thus, simple interest for 1 year = $346.5
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $346.5 × 3 = $1039.5
Thus, Simple Interest (SI) = $1039.5
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3850 + $1039.5
= $4889.5
Thus, Amount to be paid = $4889.5 Answer
Similar Questions
(1) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 8% simple interest.
(2) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.
(3) William took a loan of $5000 at the rate of 10% simple interest per annum. If he paid an amount of $9500 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 5% simple interest.
(5) Elizabeth took a loan of $4900 at the rate of 8% simple interest per annum. If he paid an amount of $7252 to clear the loan, then find the time period of the loan.
(6) David had to pay $3604 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(7) Calculate the amount due after 10 years if James borrowed a sum of $5000 at a rate of 6% simple interest.
(8) James took a loan of $4000 at the rate of 7% simple interest per annum. If he paid an amount of $6800 to clear the loan, then find the time period of the loan.
(9) In how much time a principal of $3150 will amount to $3622.5 at a simple interest of 3% per annum?
(10) If Andrew paid $5184 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.