Question:
( 1 of 10 ) What amount does James have to pay after 5 years if he takes a loan of $3000 at 5% simple interest?
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$3000
Correct Answer
$3750
Solution And Explanation
Solution
Given,
Principal (P) = $3000
Rate of Simple Interest (SI) = 5%
Time (t) = 5 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 5% simple interest means, Rate of Simple Interest (SI) is 5% 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) = $3000 × 5% × 5
= $3000 ×5/100 × 5
= 3000 × 5 × 5/100
= 15000 × 5/100
= 75000/100
= $750
Thus, Simple Interest = $750
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 = $3000 + $750
= $3750
Thus, Amount to be paid = $3750 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 = $3000
Rate of Simple Interest (SI) or (R) = 5%
And, Time (t) = 5 years
Thus, Amount (A)
= $3000 + ($3000 × 5% × 5)
= $3000 + ($3000 ×5/100 × 5)
= $3000 + (3000 × 5 × 5/100)
= $3000 + (15000 × 5/100)
= $3000 + (75000/100)
= $3000 + $750 = $3750
Thus, Amount (A) to be paid = $3750 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 5%
This, means, $5 per $100 per year
∵ For $100, the simple interest for 1 year = $5
∴ For $1, the simple interest for 1 year = 5/100
∴ For $3000, the simple interest in 1 year
= 5/100 × 3000
= 5 × 3000/100
= 15000/100 = $150
Thus, simple interest for 1 year = $150
Therefore, simple interest for 5 years
= Simple interest for 1 year × 5
= $150 × 5 = $750
Thus, Simple Interest (SI) = $750
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3000 + $750
= $3750
Thus, Amount to be paid = $3750 Answer
Similar Questions
(1) Find the amount to be paid if Thomas borrowed a sum of $5800 at 6% simple interest for 7 years.
(2) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 4% simple interest.
(3) Find the amount to be paid if James borrowed a sum of $5000 at 6% simple interest for 8 years.
(4) Find the amount to be paid if Linda borrowed a sum of $5350 at 10% simple interest for 7 years.
(5) Calculate the amount due if Robert borrowed a sum of $3100 at 4% simple interest for 3 years.
(6) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $11247 to clear the loan, then find the time period of the loan.
(7) In how much time a principal of $3200 will amount to $3840 at a simple interest of 4% per annum?
(8) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 8% simple interest?
(9) Find the amount to be paid if Robert borrowed a sum of $5100 at 9% simple interest for 7 years.
(10) If Patricia paid $3528 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.