Question:
( 1 of 10 ) Calculate the amount due if Mary borrowed a sum of $3050 at 4% simple interest for 4 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3050
Correct Answer
$3538
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 4%
Time (t) = 4 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 4% simple interest means, Rate of Simple Interest (SI) is 4% 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) = $3050 × 4% × 4
= $3050 ×4/100 × 4
= 3050 × 4 × 4/100
= 12200 × 4/100
= 48800/100
= $488
Thus, Simple Interest = $488
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 = $3050 + $488
= $3538
Thus, Amount to be paid = $3538 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 = $3050
Rate of Simple Interest (SI) or (R) = 4%
And, Time (t) = 4 years
Thus, Amount (A)
= $3050 + ($3050 × 4% × 4)
= $3050 + ($3050 ×4/100 × 4)
= $3050 + (3050 × 4 × 4/100)
= $3050 + (12200 × 4/100)
= $3050 + (48800/100)
= $3050 + $488 = $3538
Thus, Amount (A) to be paid = $3538 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 4%
This, means, $4 per $100 per year
∵ For $100, the simple interest for 1 year = $4
∴ For $1, the simple interest for 1 year = 4/100
∴ For $3050, the simple interest in 1 year
= 4/100 × 3050
= 4 × 3050/100
= 12200/100 = $122
Thus, simple interest for 1 year = $122
Therefore, simple interest for 4 years
= Simple interest for 1 year × 4
= $122 × 4 = $488
Thus, Simple Interest (SI) = $488
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $488
= $3538
Thus, Amount to be paid = $3538 Answer
Similar Questions
(1) How much loan did Linda borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6420 to clear it?
(2) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 2% simple interest?
(3) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 6% simple interest.
(4) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $8195 to clear the loan, then find the time period of the loan.
(5) Mary took a loan of $4100 at the rate of 10% simple interest per annum. If he paid an amount of $6970 to clear the loan, then find the time period of the loan.
(6) In how much time a principal of $3050 will amount to $3538 at a simple interest of 4% per annum?
(7) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 3% simple interest?
(8) Find the amount to be paid if Michael borrowed a sum of $5300 at 10% simple interest for 7 years.
(9) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $9512 to clear the loan, then find the time period of the loan.
(10) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $7052 to clear the loan, then find the time period of the loan.