Question:
( 1 of 10 ) Calculate the amount due if Robert borrowed a sum of $3100 at 6% simple interest for 4 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3100
Correct Answer
$3844
Solution And Explanation
Solution
Given,
Principal (P) = $3100
Rate of Simple Interest (SI) = 6%
Time (t) = 4 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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) = $3100 × 6% × 4
= $3100 ×6/100 × 4
= 3100 × 6 × 4/100
= 18600 × 4/100
= 74400/100
= $744
Thus, Simple Interest = $744
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 = $3100 + $744
= $3844
Thus, Amount to be paid = $3844 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 = $3100
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 4 years
Thus, Amount (A)
= $3100 + ($3100 × 6% × 4)
= $3100 + ($3100 ×6/100 × 4)
= $3100 + (3100 × 6 × 4/100)
= $3100 + (18600 × 4/100)
= $3100 + (74400/100)
= $3100 + $744 = $3844
Thus, Amount (A) to be paid = $3844 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $3100, the simple interest in 1 year
= 6/100 × 3100
= 6 × 3100/100
= 18600/100 = $186
Thus, simple interest for 1 year = $186
Therefore, simple interest for 4 years
= Simple interest for 1 year × 4
= $186 × 4 = $744
Thus, Simple Interest (SI) = $744
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3100 + $744
= $3844
Thus, Amount to be paid = $3844 Answer
Similar Questions
(1) How much loan did Richard borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6160 to clear it?
(2) Calculate the amount due if Robert borrowed a sum of $3100 at 6% simple interest for 4 years.
(3) William took a loan of $5000 at the rate of 6% simple interest per annum. If he paid an amount of $7700 to clear the loan, then find the time period of the loan.
(4) Linda took a loan of $4700 at the rate of 6% simple interest per annum. If he paid an amount of $7520 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Barbara borrowed a sum of $5550 at 4% simple interest for 8 years.
(6) How much loan did Ryan borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8690 to clear it?
(7) What amount does Elizabeth have to pay after 5 years if he takes a loan of $3450 at 2% simple interest?
(8) Calculate the amount due if Patricia borrowed a sum of $3150 at 7% simple interest for 3 years.
(9) What amount does John have to pay after 5 years if he takes a loan of $3200 at 9% simple interest?
(10) Calculate the amount due if Christopher borrowed a sum of $4000 at 2% simple interest for 3 years.