Simple Interest
MCQs Math


Question:     What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 4% simple interest?


Correct Answer  $4154

Solution And Explanation

Solution

Given,

Principal (P) = $3350

Rate of Simple Interest (SI) = 4%

Time (t) = 6 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 4% simple interest means, Rate of Simple Interest (SI) is 4% 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) = $3350 × 4% × 6

= $3350 ×4/100 × 6

= 3350 × 4 × 6/100

= 13400 × 6/100

= 80400/100

= $804

Thus, Simple Interest = $804

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 = $3350 + $804

= $4154

Thus, Amount to be paid = $4154 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 = $3350

Rate of Simple Interest (SI) or (R) = 4%

And, Time (t) = 6 years

Thus, Amount (A)

= $3350 + ($3350 × 4% × 6)

= $3350 + ($3350 ×4/100 × 6)

= $3350 + (3350 × 4 × 6/100)

= $3350 + (13400 × 6/100)

= $3350 + (80400/100)

= $3350 + $804 = $4154

Thus, Amount (A) to be paid = $4154 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 4%

This, means, $4 per $100 per year

∵ For $100, the simple interest for 1 year = $4

∴ For $1, the simple interest for 1 year = 4/100

∴ For $3350, the simple interest in 1 year

= 4/100 × 3350

= 4 × 3350/100

= 13400/100 = $134

Thus, simple interest for 1 year = $134

Therefore, simple interest for 6 years

= Simple interest for 1 year × 6

= $134 × 6 = $804

Thus, Simple Interest (SI) = $804

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $804

= $4154

Thus, Amount to be paid = $4154 Answer


Similar Questions

(1) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 9% simple interest?

(2) Elizabeth took a loan of $4900 at the rate of 8% simple interest per annum. If he paid an amount of $8820 to clear the loan, then find the time period of the loan.

(3) If Linda paid $4020 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(4) James took a loan of $4000 at the rate of 9% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.

(5) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 10% simple interest.

(6) Jessica took a loan of $5500 at the rate of 8% simple interest per annum. If he paid an amount of $8580 to clear the loan, then find the time period of the loan.

(7) Susan took a loan of $5300 at the rate of 6% simple interest per annum. If he paid an amount of $8162 to clear the loan, then find the time period of the loan.

(8) David took a loan of $4800 at the rate of 9% simple interest per annum. If he paid an amount of $7392 to clear the loan, then find the time period of the loan.

(9) In how much time a principal of $3000 will amount to $3480 at a simple interest of 4% per annum?

(10) Find the amount to be paid if Richard borrowed a sum of $5600 at 2% simple interest for 8 years.


NCERT Solution and CBSE Notes for class twelve, eleventh, tenth, ninth, seventh, sixth, fifth, fourth and General Math for competitive Exams. ©