Question:
What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 6% simple interest?
Correct Answer
$4828
Solution And Explanation
Solution
Given,
Principal (P) = $3550
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) = $3550 × 6% × 6
= $3550 ×6/100 × 6
= 3550 × 6 × 6/100
= 21300 × 6/100
= 127800/100
= $1278
Thus, Simple Interest = $1278
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 = $3550 + $1278
= $4828
Thus, Amount to be paid = $4828 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 = $3550
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 6 years
Thus, Amount (A)
= $3550 + ($3550 × 6% × 6)
= $3550 + ($3550 ×6/100 × 6)
= $3550 + (3550 × 6 × 6/100)
= $3550 + (21300 × 6/100)
= $3550 + (127800/100)
= $3550 + $1278 = $4828
Thus, Amount (A) to be paid = $4828 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 $3550, the simple interest in 1 year
= 6/100 × 3550
= 6 × 3550/100
= 21300/100 = $213
Thus, simple interest for 1 year = $213
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $213 × 6 = $1278
Thus, Simple Interest (SI) = $1278
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3550 + $1278
= $4828
Thus, Amount to be paid = $4828 Answer
Similar Questions
(1) Lisa took a loan of $6100 at the rate of 7% simple interest per annum. If he paid an amount of $8662 to clear the loan, then find the time period of the loan.
(2) Matthew took a loan of $6400 at the rate of 8% simple interest per annum. If he paid an amount of $11008 to clear the loan, then find the time period of the loan.
(3) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 9% simple interest?
(4) Calculate the amount due if Karen borrowed a sum of $3950 at 9% simple interest for 3 years.
(5) How much loan did Jeffrey borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8970 to clear it?
(6) Nancy took a loan of $6300 at the rate of 7% simple interest per annum. If he paid an amount of $9828 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 8% simple interest.
(8) Find the amount to be paid if Charles borrowed a sum of $5900 at 8% simple interest for 7 years.
(9) If Michelle paid $5940 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(10) Charles had to pay $4485 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.