Question:
( 1 of 10 ) Calculate the amount due if Richard borrowed a sum of $3600 at 7% simple interest for 4 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3600
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) If Barbara paid $4260 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(2) Sandra had to pay $5117.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(3) Find the amount to be paid if Barbara borrowed a sum of $5550 at 5% simple interest for 7 years.
(4) Find the amount to be paid if James borrowed a sum of $5000 at 5% simple interest for 7 years.
(5) Find the amount to be paid if William borrowed a sum of $5500 at 8% simple interest for 7 years.
(6) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $7084 to clear the loan, then find the time period of the loan.
(7) Find the amount to be paid if Sarah borrowed a sum of $5850 at 9% simple interest for 7 years.
(8) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 7% simple interest?
(9) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $5984 to clear the loan, then find the time period of the loan.
(10) Susan took a loan of $5300 at the rate of 6% simple interest per annum. If he paid an amount of $8162 to clear the loan, then find the time period of the loan.