Simple Interest
MCQs Math


Question:     What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 3% simple interest?


Correct Answer  $3717

Solution And Explanation

Solution

Given,

Principal (P) = $3150

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) = $3150 × 3% × 6

= $3150 ×3/100 × 6

= 3150 × 3 × 6/100

= 9450 × 6/100

= 56700/100

= $567

Thus, Simple Interest = $567

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 = $3150 + $567

= $3717

Thus, Amount to be paid = $3717 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 = $3150

Rate of Simple Interest (SI) or (R) = 3%

And, Time (t) = 6 years

Thus, Amount (A)

= $3150 + ($3150 × 3% × 6)

= $3150 + ($3150 ×3/100 × 6)

= $3150 + (3150 × 3 × 6/100)

= $3150 + (9450 × 6/100)

= $3150 + (56700/100)

= $3150 + $567 = $3717

Thus, Amount (A) to be paid = $3717 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 $3150, the simple interest in 1 year

= 3/100 × 3150

= 3 × 3150/100

= 9450/100 = $94.5

Thus, simple interest for 1 year = $94.5

Therefore, simple interest for 6 years

= Simple interest for 1 year × 6

= $94.5 × 6 = $567

Thus, Simple Interest (SI) = $567

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3150 + $567

= $3717

Thus, Amount to be paid = $3717 Answer


Similar Questions

(1) Patricia took a loan of $4300 at the rate of 8% simple interest per annum. If he paid an amount of $6708 to clear the loan, then find the time period of the loan.

(2) Mark took a loan of $6800 at the rate of 8% simple interest per annum. If he paid an amount of $11152 to clear the loan, then find the time period of the loan.

(3) Find the amount to be paid if David borrowed a sum of $5400 at 10% simple interest for 7 years.

(4) Find the amount to be paid if Sarah borrowed a sum of $5850 at 9% simple interest for 7 years.

(5) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 5% simple interest?

(6) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 7% simple interest?

(7) If Steven paid $4968 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.

(8) Jennifer had to pay $3542.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(9) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 9% simple interest.

(10) If Christopher paid $4640 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.


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