Simple Interest
MCQs Math


Question:     Calculate the amount due if Richard borrowed a sum of $3600 at 7% simple interest for 4 years.


Correct Answer  $4608

Solution And Explanation

Solution

Given,

Principal (P) = $3600

Rate of Simple Interest (SI) = 7%

Time (t) = 4 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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) = $3600 × 7% × 4

= $3600 ×7/100 × 4

= 3600 × 7 × 4/100

= 25200 × 4/100

= 100800/100

= $1008

Thus, Simple Interest = $1008

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 = $3600 + $1008

= $4608

Thus, Amount to be paid = $4608 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 = $3600

Rate of Simple Interest (SI) or (R) = 7%

And, Time (t) = 4 years

Thus, Amount (A)

= $3600 + ($3600 × 7% × 4)

= $3600 + ($3600 ×7/100 × 4)

= $3600 + (3600 × 7 × 4/100)

= $3600 + (25200 × 4/100)

= $3600 + (100800/100)

= $3600 + $1008 = $4608

Thus, Amount (A) to be paid = $4608 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 7%

This, means, $7 per $100 per year

∵ For $100, the simple interest for 1 year = $7

∴ For $1, the simple interest for 1 year = 7/100

∴ For $3600, the simple interest in 1 year

= 7/100 × 3600

= 7 × 3600/100

= 25200/100 = $252

Thus, simple interest for 1 year = $252

Therefore, simple interest for 4 years

= Simple interest for 1 year × 4

= $252 × 4 = $1008

Thus, Simple Interest (SI) = $1008

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3600 + $1008

= $4608

Thus, Amount to be paid = $4608 Answer


Similar Questions

(1) Find the amount to be paid if Michael borrowed a sum of $5300 at 9% simple interest for 7 years.

(2) Karen took a loan of $5900 at the rate of 10% simple interest per annum. If he paid an amount of $11210 to clear the loan, then find the time period of the loan.

(3) Michael took a loan of $4600 at the rate of 6% simple interest per annum. If he paid an amount of $6532 to clear the loan, then find the time period of the loan.

(4) How much loan did Sarah borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6435 to clear it?

(5) What amount does David have to pay after 6 years if he takes a loan of $3400 at 7% simple interest?

(6) Charles had to pay $4251 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(7) Susan took a loan of $5300 at the rate of 9% simple interest per annum. If he paid an amount of $8639 to clear the loan, then find the time period of the loan.

(8) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 2% simple interest.

(9) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 2% simple interest for 8 years.

(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.


NCERT Solution and CBSE Notes for class twelve, eleventh, tenth, ninth, seventh, sixth, fifth, fourth and General Math for competitive Exams. ©