Question:
What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 6% simple interest?
Correct Answer
$4216
Solution And Explanation
Solution
Given,
Principal (P) = $3100
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) = $3100 × 6% × 6
= $3100 ×6/100 × 6
= 3100 × 6 × 6/100
= 18600 × 6/100
= 111600/100
= $1116
Thus, Simple Interest = $1116
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 = $3100 + $1116
= $4216
Thus, Amount to be paid = $4216 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 = $3100
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 6 years
Thus, Amount (A)
= $3100 + ($3100 × 6% × 6)
= $3100 + ($3100 ×6/100 × 6)
= $3100 + (3100 × 6 × 6/100)
= $3100 + (18600 × 6/100)
= $3100 + (111600/100)
= $3100 + $1116 = $4216
Thus, Amount (A) to be paid = $4216 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 $3100, the simple interest in 1 year
= 6/100 × 3100
= 6 × 3100/100
= 18600/100 = $186
Thus, simple interest for 1 year = $186
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $186 × 6 = $1116
Thus, Simple Interest (SI) = $1116
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3100 + $1116
= $4216
Thus, Amount to be paid = $4216 Answer
Similar Questions
(1) Find the amount to be paid if Michael borrowed a sum of $5300 at 8% simple interest for 8 years.
(2) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 6% simple interest?
(3) Susan took a loan of $5300 at the rate of 7% simple interest per annum. If he paid an amount of $9010 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Joseph borrowed a sum of $3700 at 3% simple interest for 4 years.
(5) If Lisa paid $4698 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(6) What amount does Elizabeth have to pay after 6 years if he takes a loan of $3450 at 7% simple interest?
(7) How much loan did Cynthia borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $9142.5 to clear it?
(8) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 3% simple interest?
(9) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 4% simple interest?
(10) Robert had to pay $3565 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.