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) If Charles paid $4680 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(2) Calculate the amount due if Susan borrowed a sum of $3650 at 9% simple interest for 3 years.
(3) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $8378 to clear the loan, then find the time period of the loan.
(4) Nancy took a loan of $6300 at the rate of 7% simple interest per annum. If he paid an amount of $9828 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 4% simple interest.
(6) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $7820 to clear the loan, then find the time period of the loan.
(7) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 2% simple interest?
(8) Anthony took a loan of $6600 at the rate of 8% simple interest per annum. If he paid an amount of $11880 to clear the loan, then find the time period of the loan.
(9) Find the amount to be paid if Michael borrowed a sum of $5300 at 5% simple interest for 8 years.
(10) Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $6314 to clear the loan, then find the time period of the loan.