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) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 4% simple interest.
(2) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $8932 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due if Michael borrowed a sum of $3300 at 7% simple interest for 4 years.
(4) Linda took a loan of $4700 at the rate of 9% simple interest per annum. If he paid an amount of $7661 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if William borrowed a sum of $3500 at 3% simple interest for 4 years.
(6) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 10% simple interest.
(7) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 4% simple interest.
(8) Steven had to pay $5014 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(9) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 6% simple interest?
(10) What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 10% simple interest?