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) Michael took a loan of $4600 at the rate of 10% simple interest per annum. If he paid an amount of $8280 to clear the loan, then find the time period of the loan.
(2) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $9656 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 10% simple interest.
(4) David had to pay $3604 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(5) Calculate the amount due if Joseph borrowed a sum of $3700 at 7% simple interest for 4 years.
(6) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $10064 to clear the loan, then find the time period of the loan.
(7) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 4% simple interest?
(8) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 6% simple interest.
(9) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6216 to clear the loan, then find the time period of the loan.
(10) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 7% simple interest?