Question:
Calculate the amount due if Susan borrowed a sum of $3650 at 6% simple interest for 4 years.
Correct Answer
$4526
Solution And Explanation
Solution
Given,
Principal (P) = $3650
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) = $3650 × 6% × 4
= $3650 ×6/100 × 4
= 3650 × 6 × 4/100
= 21900 × 4/100
= 87600/100
= $876
Thus, Simple Interest = $876
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 = $3650 + $876
= $4526
Thus, Amount to be paid = $4526 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 = $3650
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 4 years
Thus, Amount (A)
= $3650 + ($3650 × 6% × 4)
= $3650 + ($3650 ×6/100 × 4)
= $3650 + (3650 × 6 × 4/100)
= $3650 + (21900 × 4/100)
= $3650 + (87600/100)
= $3650 + $876 = $4526
Thus, Amount (A) to be paid = $4526 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 $3650, the simple interest in 1 year
= 6/100 × 3650
= 6 × 3650/100
= 21900/100 = $219
Thus, simple interest for 1 year = $219
Therefore, simple interest for 4 years
= Simple interest for 1 year × 4
= $219 × 4 = $876
Thus, Simple Interest (SI) = $876
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3650 + $876
= $4526
Thus, Amount to be paid = $4526 Answer
Similar Questions
(1) Calculate the amount due if Susan borrowed a sum of $3650 at 9% simple interest for 4 years.
(2) Find the amount to be paid if Jessica borrowed a sum of $5750 at 4% simple interest for 8 years.
(3) Calculate the amount due if John borrowed a sum of $3200 at 9% simple interest for 3 years.
(4) If James paid $3480 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(5) If Richard paid $4320 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(6) Calculate the amount due if James borrowed a sum of $3000 at 10% simple interest for 3 years.
(7) Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $9943 to clear the loan, then find the time period of the loan.
(8) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 5% simple interest?
(9) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 6% simple interest?
(10) Jessica took a loan of $5500 at the rate of 8% simple interest per annum. If he paid an amount of $9020 to clear the loan, then find the time period of the loan.