Question:
What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 6% simple interest?
Correct Answer
$3965
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 6%
Time (t) = 5 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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 × 6% × 5
= $3050 ×6/100 × 5
= 3050 × 6 × 5/100
= 18300 × 5/100
= 91500/100
= $915
Thus, Simple Interest = $915
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 + $915
= $3965
Thus, Amount to be paid = $3965 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) = 6%
And, Time (t) = 5 years
Thus, Amount (A)
= $3050 + ($3050 × 6% × 5)
= $3050 + ($3050 ×6/100 × 5)
= $3050 + (3050 × 6 × 5/100)
= $3050 + (18300 × 5/100)
= $3050 + (91500/100)
= $3050 + $915 = $3965
Thus, Amount (A) to be paid = $3965 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $3050, the simple interest in 1 year
= 6/100 × 3050
= 6 × 3050/100
= 18300/100 = $183
Thus, simple interest for 1 year = $183
Therefore, simple interest for 5 years
= Simple interest for 1 year × 5
= $183 × 5 = $915
Thus, Simple Interest (SI) = $915
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $915
= $3965
Thus, Amount to be paid = $3965 Answer
Similar Questions
(1) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 6% simple interest?
(2) Calculate the amount due if Robert borrowed a sum of $3100 at 3% simple interest for 3 years.
(3) Calculate the amount due if Sarah borrowed a sum of $3850 at 3% simple interest for 4 years.
(4) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 3% simple interest?
(5) Find the amount to be paid if Mary borrowed a sum of $5050 at 3% simple interest for 8 years.
(6) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 2% simple interest.
(7) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 4% simple interest?
(8) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $10800 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Jessica borrowed a sum of $5750 at 7% simple interest for 8 years.
(10) How much loan did John borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5980 to clear it?