Question:
( 2 of 10 ) Calculate the amount due if Mary borrowed a sum of $3050 at 10% simple interest for 4 years.
(A) 258.39 km
(B) 215.33 km
(C) 172.26 km
(D) 137.81 km
You selected
$3050
Correct Answer
$4270
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 10%
Time (t) = 4 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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 × 10% × 4
= $3050 ×10/100 × 4
= 3050 × 10 × 4/100
= 30500 × 4/100
= 122000/100
= $1220
Thus, Simple Interest = $1220
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 + $1220
= $4270
Thus, Amount to be paid = $4270 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) = 10%
And, Time (t) = 4 years
Thus, Amount (A)
= $3050 + ($3050 × 10% × 4)
= $3050 + ($3050 ×10/100 × 4)
= $3050 + (3050 × 10 × 4/100)
= $3050 + (30500 × 4/100)
= $3050 + (122000/100)
= $3050 + $1220 = $4270
Thus, Amount (A) to be paid = $4270 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $3050, the simple interest in 1 year
= 10/100 × 3050
= 10 × 3050/100
= 30500/100 = $305
Thus, simple interest for 1 year = $305
Therefore, simple interest for 4 years
= Simple interest for 1 year × 4
= $305 × 4 = $1220
Thus, Simple Interest (SI) = $1220
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $1220
= $4270
Thus, Amount to be paid = $4270 Answer
Similar Questions
(1) Calculate the amount due if James borrowed a sum of $3000 at 3% simple interest for 4 years.
(2) Donald took a loan of $7000 at the rate of 7% simple interest per annum. If he paid an amount of $11410 to clear the loan, then find the time period of the loan.
(3) What amount will be due after 2 years if James borrowed a sum of $3000 at a 8% simple interest?
(4) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 2% simple interest for 4 years.
(5) How much loan did Michael borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6625 to clear it?
(6) How much loan did Timothy borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8140 to clear it?
(7) What amount does James have to pay after 6 years if he takes a loan of $3000 at 5% simple interest?
(8) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 10% simple interest?
(9) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $8320 to clear the loan, then find the time period of the loan.
(10) What amount does John have to pay after 5 years if he takes a loan of $3200 at 9% simple interest?