Question:
What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 6% simple interest?
Correct Answer
$4148
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 6%
Time (t) = 6 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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 × 6% × 6
= $3050 ×6/100 × 6
= 3050 × 6 × 6/100
= 18300 × 6/100
= 109800/100
= $1098
Thus, Simple Interest = $1098
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 + $1098
= $4148
Thus, Amount to be paid = $4148 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) = 6%
And, Time (t) = 6 years
Thus, Amount (A)
= $3050 + ($3050 × 6% × 6)
= $3050 + ($3050 ×6/100 × 6)
= $3050 + (3050 × 6 × 6/100)
= $3050 + (18300 × 6/100)
= $3050 + (109800/100)
= $3050 + $1098 = $4148
Thus, Amount (A) to be paid = $4148 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $3050, the simple interest in 1 year
= 6/100 × 3050
= 6 × 3050/100
= 18300/100 = $183
Thus, simple interest for 1 year = $183
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $183 × 6 = $1098
Thus, Simple Interest (SI) = $1098
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $1098
= $4148
Thus, Amount to be paid = $4148 Answer
Similar Questions
(1) Nancy took a loan of $6300 at the rate of 6% simple interest per annum. If he paid an amount of $8946 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due if Charles borrowed a sum of $3900 at 8% simple interest for 4 years.
(3) Patricia took a loan of $4300 at the rate of 7% simple interest per annum. If he paid an amount of $6106 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Jessica borrowed a sum of $3750 at 8% simple interest for 3 years.
(5) Calculate the amount due if Jennifer borrowed a sum of $3250 at 10% simple interest for 4 years.
(6) Calculate the amount due if William borrowed a sum of $3500 at 2% simple interest for 4 years.
(7) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 6% simple interest?
(8) If Donna paid $5432 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(9) James had to pay $3270 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(10) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 7% simple interest?