Question:
What amount does Jennifer have to pay after 6 years if he takes a loan of $3250 at 3% simple interest?
Correct Answer
$3835
Solution And Explanation
Solution
Given,
Principal (P) = $3250
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) = $3250 × 3% × 6
= $3250 ×3/100 × 6
= 3250 × 3 × 6/100
= 9750 × 6/100
= 58500/100
= $585
Thus, Simple Interest = $585
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 = $3250 + $585
= $3835
Thus, Amount to be paid = $3835 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 = $3250
Rate of Simple Interest (SI) or (R) = 3%
And, Time (t) = 6 years
Thus, Amount (A)
= $3250 + ($3250 × 3% × 6)
= $3250 + ($3250 ×3/100 × 6)
= $3250 + (3250 × 3 × 6/100)
= $3250 + (9750 × 6/100)
= $3250 + (58500/100)
= $3250 + $585 = $3835
Thus, Amount (A) to be paid = $3835 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 $3250, the simple interest in 1 year
= 3/100 × 3250
= 3 × 3250/100
= 9750/100 = $97.5
Thus, simple interest for 1 year = $97.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $97.5 × 6 = $585
Thus, Simple Interest (SI) = $585
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3250 + $585
= $3835
Thus, Amount to be paid = $3835 Answer
Similar Questions
(1) If Matthew paid $5040 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(2) In how much time a principal of $3200 will amount to $3456 at a simple interest of 2% per annum?
(3) Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 2% simple interest.
(4) Find the amount to be paid if Barbara borrowed a sum of $5550 at 3% simple interest for 8 years.
(5) If Anthony paid $4644 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(6) Find the amount to be paid if Barbara borrowed a sum of $5550 at 5% simple interest for 7 years.
(7) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 10% simple interest?
(8) Find the amount to be paid if Linda borrowed a sum of $5350 at 3% simple interest for 7 years.
(9) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 10% simple interest?
(10) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 4% simple interest.