Question:
What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 6% simple interest?
Correct Answer
$5168
Solution And Explanation
Solution
Given,
Principal (P) = $3800
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) = $3800 × 6% × 6
= $3800 ×6/100 × 6
= 3800 × 6 × 6/100
= 22800 × 6/100
= 136800/100
= $1368
Thus, Simple Interest = $1368
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 = $3800 + $1368
= $5168
Thus, Amount to be paid = $5168 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 = $3800
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 6 years
Thus, Amount (A)
= $3800 + ($3800 × 6% × 6)
= $3800 + ($3800 ×6/100 × 6)
= $3800 + (3800 × 6 × 6/100)
= $3800 + (22800 × 6/100)
= $3800 + (136800/100)
= $3800 + $1368 = $5168
Thus, Amount (A) to be paid = $5168 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 $3800, the simple interest in 1 year
= 6/100 × 3800
= 6 × 3800/100
= 22800/100 = $228
Thus, simple interest for 1 year = $228
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $228 × 6 = $1368
Thus, Simple Interest (SI) = $1368
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3800 + $1368
= $5168
Thus, Amount to be paid = $5168 Answer
Similar Questions
(1) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 10% simple interest?
(2) How much loan did Patricia borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $5665 to clear it?
(3) Calculate the amount due if Charles borrowed a sum of $3900 at 3% simple interest for 4 years.
(4) Anthony took a loan of $6600 at the rate of 10% simple interest per annum. If he paid an amount of $12540 to clear the loan, then find the time period of the loan.
(5) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 3% simple interest?
(6) Find the amount to be paid if John borrowed a sum of $5200 at 6% simple interest for 8 years.
(7) How much loan did Richard borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6720 to clear it?
(8) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $10880 to clear the loan, then find the time period of the loan.
(9) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 9% simple interest?
(10) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $8195 to clear the loan, then find the time period of the loan.