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) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $7104 to clear the loan, then find the time period of the loan.
(2) Patricia took a loan of $4300 at the rate of 9% simple interest per annum. If he paid an amount of $8170 to clear the loan, then find the time period of the loan.
(3) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $6622 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due after 10 years if Karen borrowed a sum of $5950 at a rate of 10% simple interest.
(5) Calculate the amount due if Patricia borrowed a sum of $3150 at 10% simple interest for 4 years.
(6) Calculate the amount due after 10 years if Jennifer borrowed a sum of $5250 at a rate of 5% simple interest.
(7) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 4% simple interest.
(8) In how much time a principal of $3150 will amount to $3465 at a simple interest of 2% per annum?
(9) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 6% simple interest?
(10) Thomas took a loan of $5600 at the rate of 10% simple interest per annum. If he paid an amount of $11200 to clear the loan, then find the time period of the loan.