Question:
What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 8% simple interest?
Correct Answer
$5402
Solution And Explanation
Solution
Given,
Principal (P) = $3650
Rate of Simple Interest (SI) = 8%
Time (t) = 6 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 8% simple interest means, Rate of Simple Interest (SI) is 8% 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 × 8% × 6
= $3650 ×8/100 × 6
= 3650 × 8 × 6/100
= 29200 × 6/100
= 175200/100
= $1752
Thus, Simple Interest = $1752
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 + $1752
= $5402
Thus, Amount to be paid = $5402 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) = 8%
And, Time (t) = 6 years
Thus, Amount (A)
= $3650 + ($3650 × 8% × 6)
= $3650 + ($3650 ×8/100 × 6)
= $3650 + (3650 × 8 × 6/100)
= $3650 + (29200 × 6/100)
= $3650 + (175200/100)
= $3650 + $1752 = $5402
Thus, Amount (A) to be paid = $5402 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 8%
This, means, $8 per $100 per year
∵ For $100, the simple interest for 1 year = $8
∴ For $1, the simple interest for 1 year = 8/100
∴ For $3650, the simple interest in 1 year
= 8/100 × 3650
= 8 × 3650/100
= 29200/100 = $292
Thus, simple interest for 1 year = $292
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $292 × 6 = $1752
Thus, Simple Interest (SI) = $1752
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3650 + $1752
= $5402
Thus, Amount to be paid = $5402 Answer
Similar Questions
(1) Mark took a loan of $6800 at the rate of 10% simple interest per annum. If he paid an amount of $13600 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if Christopher borrowed a sum of $6000 at 4% simple interest for 8 years.
(3) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $5775 to clear it?
(4) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 8% simple interest?
(5) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $7844 to clear the loan, then find the time period of the loan.
(6) Find the amount to be paid if William borrowed a sum of $5500 at 4% simple interest for 8 years.
(7) Charles took a loan of $5800 at the rate of 8% simple interest per annum. If he paid an amount of $9512 to clear the loan, then find the time period of the loan.
(8) In how much time a principal of $3200 will amount to $3840 at a simple interest of 4% per annum?
(9) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 8% simple interest.
(10) If Sarah paid $4312 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.