Question:
( 1 of 10 ) Calculate the amount due if Patricia borrowed a sum of $3150 at 10% simple interest for 3 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3150
Correct Answer
$4095
Solution And Explanation
Solution
Given,
Principal (P) = $3150
Rate of Simple Interest (SI) = 10%
Time (t) = 3 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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) = $3150 × 10% × 3
= $3150 ×10/100 × 3
= 3150 × 10 × 3/100
= 31500 × 3/100
= 94500/100
= $945
Thus, Simple Interest = $945
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 = $3150 + $945
= $4095
Thus, Amount to be paid = $4095 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 = $3150
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 3 years
Thus, Amount (A)
= $3150 + ($3150 × 10% × 3)
= $3150 + ($3150 ×10/100 × 3)
= $3150 + (3150 × 10 × 3/100)
= $3150 + (31500 × 3/100)
= $3150 + (94500/100)
= $3150 + $945 = $4095
Thus, Amount (A) to be paid = $4095 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $3150, the simple interest in 1 year
= 10/100 × 3150
= 10 × 3150/100
= 31500/100 = $315
Thus, simple interest for 1 year = $315
Therefore, simple interest for 3 years
= Simple interest for 1 year × 3
= $315 × 3 = $945
Thus, Simple Interest (SI) = $945
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3150 + $945
= $4095
Thus, Amount to be paid = $4095 Answer
Similar Questions
(1) Calculate the amount due if Joseph borrowed a sum of $3700 at 8% simple interest for 3 years.
(2) James took a loan of $4000 at the rate of 10% simple interest per annum. If he paid an amount of $7600 to clear the loan, then find the time period of the loan.
(3) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $7072 to clear the loan, then find the time period of the loan.
(4) How much loan did John borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6500 to clear it?
(5) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $8280 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 8% simple interest.
(7) Linda took a loan of $4700 at the rate of 9% simple interest per annum. If he paid an amount of $8084 to clear the loan, then find the time period of the loan.
(8) How much loan did Brian borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8640 to clear it?
(9) What amount does John have to pay after 5 years if he takes a loan of $3200 at 5% simple interest?
(10) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 2% simple interest.