Question:
What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 3% simple interest?
Correct Answer
$3599
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 3%
Time (t) = 6 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% 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 × 3% × 6
= $3050 ×3/100 × 6
= 3050 × 3 × 6/100
= 9150 × 6/100
= 54900/100
= $549
Thus, Simple Interest = $549
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 + $549
= $3599
Thus, Amount to be paid = $3599 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) = 3%
And, Time (t) = 6 years
Thus, Amount (A)
= $3050 + ($3050 × 3% × 6)
= $3050 + ($3050 ×3/100 × 6)
= $3050 + (3050 × 3 × 6/100)
= $3050 + (9150 × 6/100)
= $3050 + (54900/100)
= $3050 + $549 = $3599
Thus, Amount (A) to be paid = $3599 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 3%
This, means, $3 per $100 per year
∵ For $100, the simple interest for 1 year = $3
∴ For $1, the simple interest for 1 year = 3/100
∴ For $3050, the simple interest in 1 year
= 3/100 × 3050
= 3 × 3050/100
= 9150/100 = $91.5
Thus, simple interest for 1 year = $91.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $91.5 × 6 = $549
Thus, Simple Interest (SI) = $549
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $549
= $3599
Thus, Amount to be paid = $3599 Answer
Similar Questions
(1) Find the amount to be paid if Mary borrowed a sum of $5050 at 7% simple interest for 7 years.
(2) Calculate the amount due if Barbara borrowed a sum of $3550 at 5% simple interest for 4 years.
(3) Sandra took a loan of $6900 at the rate of 6% simple interest per annum. If he paid an amount of $10212 to clear the loan, then find the time period of the loan.
(4) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 4% simple interest?
(5) Calculate the amount due if Richard borrowed a sum of $3600 at 2% simple interest for 4 years.
(6) Calculate the amount due after 10 years if James borrowed a sum of $5000 at a rate of 8% simple interest.
(7) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 7% simple interest for 8 years.
(8) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $11970 to clear the loan, then find the time period of the loan.
(9) In how much time a principal of $3150 will amount to $3654 at a simple interest of 4% per annum?
(10) In how much time a principal of $3200 will amount to $3520 at a simple interest of 5% per annum?