Simple Interest
MCQs Math


Question:     What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 2% simple interest?


Correct Answer  $3685

Solution And Explanation

Solution

Given,

Principal (P) = $3350

Rate of Simple Interest (SI) = 2%

Time (t) = 5 years

Thus, Amount (A) = ?

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

Thus, here 2% simple interest means, Rate of Simple Interest (SI) is 2% 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) = $3350 × 2% × 5

= $3350 ×2/100 × 5

= 3350 × 2 × 5/100

= 6700 × 5/100

= 33500/100

= $335

Thus, Simple Interest = $335

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 = $3350 + $335

= $3685

Thus, Amount to be paid = $3685 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 = $3350

Rate of Simple Interest (SI) or (R) = 2%

And, Time (t) = 5 years

Thus, Amount (A)

= $3350 + ($3350 × 2% × 5)

= $3350 + ($3350 ×2/100 × 5)

= $3350 + (3350 × 2 × 5/100)

= $3350 + (6700 × 5/100)

= $3350 + (33500/100)

= $3350 + $335 = $3685

Thus, Amount (A) to be paid = $3685 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 2%

This, means, $2 per $100 per year

∵ For $100, the simple interest for 1 year = $2

∴ For $1, the simple interest for 1 year = 2/100

∴ For $3350, the simple interest in 1 year

= 2/100 × 3350

= 2 × 3350/100

= 6700/100 = $67

Thus, simple interest for 1 year = $67

Therefore, simple interest for 5 years

= Simple interest for 1 year × 5

= $67 × 5 = $335

Thus, Simple Interest (SI) = $335

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $335

= $3685

Thus, Amount to be paid = $3685 Answer


Similar Questions

(1) Betty took a loan of $6500 at the rate of 6% simple interest per annum. If he paid an amount of $10400 to clear the loan, then find the time period of the loan.

(2) Calculate the amount due if Jennifer borrowed a sum of $3250 at 3% simple interest for 4 years.

(3) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 7% simple interest for 7 years.

(4) Susan took a loan of $5300 at the rate of 6% simple interest per annum. If he paid an amount of $7208 to clear the loan, then find the time period of the loan.

(5) Find the amount to be paid if Joseph borrowed a sum of $5700 at 9% simple interest for 8 years.

(6) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $6864 to clear the loan, then find the time period of the loan.

(7) Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $8493 to clear the loan, then find the time period of the loan.

(8) How much loan did Michelle borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7992.5 to clear it?

(9) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.

(10) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $11868 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. ©