Question:
( 2 of 10 ) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 3% simple interest?
(A) 258.39 km
(B) 215.33 km
(C) 172.26 km
(D) 137.81 km
You selected
$3150
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) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6468 to clear the loan, then find the time period of the loan.
(2) Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $9548 to clear the loan, then find the time period of the loan.
(3) Anthony had to pay $4816 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(4) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 8% simple interest?
(5) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 5% simple interest for 3 years.
(6) How much loan did Timothy borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8140 to clear it?
(7) Sandra took a loan of $6900 at the rate of 6% simple interest per annum. If he paid an amount of $11040 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due if Jennifer borrowed a sum of $3250 at 4% simple interest for 4 years.
(9) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 10% simple interest?
(10) John had to pay $3584 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.