Question:
What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 6% simple interest?
Correct Answer
$4964
Solution And Explanation
Solution
Given,
Principal (P) = $3650
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) = $3650 × 6% × 6
= $3650 ×6/100 × 6
= 3650 × 6 × 6/100
= 21900 × 6/100
= 131400/100
= $1314
Thus, Simple Interest = $1314
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 = $3650 + $1314
= $4964
Thus, Amount to be paid = $4964 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 = $3650
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 6 years
Thus, Amount (A)
= $3650 + ($3650 × 6% × 6)
= $3650 + ($3650 ×6/100 × 6)
= $3650 + (3650 × 6 × 6/100)
= $3650 + (21900 × 6/100)
= $3650 + (131400/100)
= $3650 + $1314 = $4964
Thus, Amount (A) to be paid = $4964 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 $3650, the simple interest in 1 year
= 6/100 × 3650
= 6 × 3650/100
= 21900/100 = $219
Thus, simple interest for 1 year = $219
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $219 × 6 = $1314
Thus, Simple Interest (SI) = $1314
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3650 + $1314
= $4964
Thus, Amount to be paid = $4964 Answer
Similar Questions
(1) If Thomas paid $4256 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(2) Daniel had to pay $4592 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(3) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $7810 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Christopher borrowed a sum of $6000 at 7% simple interest for 8 years.
(5) Patricia had to pay $3433.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(6) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 10% simple interest.
(7) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 10% simple interest?
(8) How much loan did Steven borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8250 to clear it?
(9) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $12400 to clear the loan, then find the time period of the loan.
(10) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 9% simple interest?