Question:
What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 7% simple interest?
Correct Answer
$5183
Solution And Explanation
Solution
Given,
Principal (P) = $3650
Rate of Simple Interest (SI) = 7%
Time (t) = 6 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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 × 7% × 6
= $3650 ×7/100 × 6
= 3650 × 7 × 6/100
= 25550 × 6/100
= 153300/100
= $1533
Thus, Simple Interest = $1533
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 + $1533
= $5183
Thus, Amount to be paid = $5183 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) = 7%
And, Time (t) = 6 years
Thus, Amount (A)
= $3650 + ($3650 × 7% × 6)
= $3650 + ($3650 ×7/100 × 6)
= $3650 + (3650 × 7 × 6/100)
= $3650 + (25550 × 6/100)
= $3650 + (153300/100)
= $3650 + $1533 = $5183
Thus, Amount (A) to be paid = $5183 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 7%
This, means, $7 per $100 per year
∵ For $100, the simple interest for 1 year = $7
∴ For $1, the simple interest for 1 year = 7/100
∴ For $3650, the simple interest in 1 year
= 7/100 × 3650
= 7 × 3650/100
= 25550/100 = $255.5
Thus, simple interest for 1 year = $255.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $255.5 × 6 = $1533
Thus, Simple Interest (SI) = $1533
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3650 + $1533
= $5183
Thus, Amount to be paid = $5183 Answer
Similar Questions
(1) Robert took a loan of $4200 at the rate of 10% simple interest per annum. If he paid an amount of $7980 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if Joseph borrowed a sum of $5700 at 9% simple interest for 8 years.
(3) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 5% simple interest?
(4) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 3% simple interest.
(5) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 6% simple interest for 8 years.
(6) How much loan did Jacob borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $9200 to clear it?
(7) In how much time a principal of $3000 will amount to $3270 at a simple interest of 3% per annum?
(8) Find the amount to be paid if Robert borrowed a sum of $5100 at 8% simple interest for 7 years.
(9) What amount does Michael have to pay after 5 years if he takes a loan of $3300 at 2% simple interest?
(10) If Emily paid $5510 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.