Question:
What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 6% simple interest?
Correct Answer
$4556
Solution And Explanation
Solution
Given,
Principal (P) = $3350
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) = $3350 × 6% × 6
= $3350 ×6/100 × 6
= 3350 × 6 × 6/100
= 20100 × 6/100
= 120600/100
= $1206
Thus, Simple Interest = $1206
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 + $1206
= $4556
Thus, Amount to be paid = $4556 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) = 6%
And, Time (t) = 6 years
Thus, Amount (A)
= $3350 + ($3350 × 6% × 6)
= $3350 + ($3350 ×6/100 × 6)
= $3350 + (3350 × 6 × 6/100)
= $3350 + (20100 × 6/100)
= $3350 + (120600/100)
= $3350 + $1206 = $4556
Thus, Amount (A) to be paid = $4556 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 $3350, the simple interest in 1 year
= 6/100 × 3350
= 6 × 3350/100
= 20100/100 = $201
Thus, simple interest for 1 year = $201
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $201 × 6 = $1206
Thus, Simple Interest (SI) = $1206
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3350 + $1206
= $4556
Thus, Amount to be paid = $4556 Answer
Similar Questions
(1) Barbara had to pay $3763 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(2) Calculate the amount due after 9 years if Mary borrowed a sum of $5050 at a rate of 7% simple interest.
(3) What amount does John have to pay after 5 years if he takes a loan of $3200 at 9% simple interest?
(4) If David borrowed $3400 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(5) Calculate the amount due if Christopher borrowed a sum of $4000 at 4% simple interest for 4 years.
(6) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 3% simple interest?
(7) Sandra had to pay $4850.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(8) Calculate the amount due after 10 years if Richard borrowed a sum of $5600 at a rate of 6% simple interest.
(9) In how much time a principal of $3200 will amount to $3520 at a simple interest of 2% per annum?
(10) Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $8940 to clear the loan, then find the time period of the loan.