Question:
( 1 of 10 ) Calculate the amount due if Patricia borrowed a sum of $3150 at 3% simple interest for 4 years.
(A) 4 47/50 Or, 247/50
(B) 8 47/50 Or, 447/50
(C) 4 141/50 Or, 341/50
(D) 4 94/50 Or, 294/50
You selected
$3150
Correct Answer
$3528
Solution And Explanation
Solution
Given,
Principal (P) = $3150
Rate of Simple Interest (SI) = 3%
Time (t) = 4 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% 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 × 3% × 4
= $3150 ×3/100 × 4
= 3150 × 3 × 4/100
= 9450 × 4/100
= 37800/100
= $378
Thus, Simple Interest = $378
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 + $378
= $3528
Thus, Amount to be paid = $3528 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) = 3%
And, Time (t) = 4 years
Thus, Amount (A)
= $3150 + ($3150 × 3% × 4)
= $3150 + ($3150 ×3/100 × 4)
= $3150 + (3150 × 3 × 4/100)
= $3150 + (9450 × 4/100)
= $3150 + (37800/100)
= $3150 + $378 = $3528
Thus, Amount (A) to be paid = $3528 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 3%
This, means, $3 per $100 per year
∵ For $100, the simple interest for 1 year = $3
∴ For $1, the simple interest for 1 year = 3/100
∴ For $3150, the simple interest in 1 year
= 3/100 × 3150
= 3 × 3150/100
= 9450/100 = $94.5
Thus, simple interest for 1 year = $94.5
Therefore, simple interest for 4 years
= Simple interest for 1 year × 4
= $94.5 × 4 = $378
Thus, Simple Interest (SI) = $378
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3150 + $378
= $3528
Thus, Amount to be paid = $3528 Answer
Similar Questions
(1) What amount does David have to pay after 5 years if he takes a loan of $3400 at 6% simple interest?
(2) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 10% simple interest.
(3) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 10% simple interest for 4 years.
(4) In how much time a principal of $3100 will amount to $3720 at a simple interest of 5% per annum?
(5) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 3% simple interest?
(6) Matthew had to pay $4578 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(7) Calculate the amount due if Karen borrowed a sum of $3950 at 10% simple interest for 4 years.
(8) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 2% simple interest?
(9) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $8880 to clear the loan, then find the time period of the loan.
(10) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $7152 to clear the loan, then find the time period of the loan.