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) Sandra took a loan of $6900 at the rate of 10% simple interest per annum. If he paid an amount of $13110 to clear the loan, then find the time period of the loan.
(2) How much loan did William borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6325 to clear it?
(3) In how much time a principal of $3200 will amount to $3456 at a simple interest of 4% per annum?
(4) Calculate the amount due after 10 years if Christopher borrowed a sum of $6000 at a rate of 10% simple interest.
(5) How much loan did Jacob borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8800 to clear it?
(6) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 10% simple interest?
(7) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $9656 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 6% simple interest.
(9) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 7% simple interest.
(10) Find the amount to be paid if Susan borrowed a sum of $5650 at 3% simple interest for 7 years.