Question:
What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 9% simple interest?
Correct Answer
$4697
Solution And Explanation
Solution
Given,
Principal (P) = $3050
Rate of Simple Interest (SI) = 9%
Time (t) = 6 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $3050 × 9% × 6
= $3050 ×9/100 × 6
= 3050 × 9 × 6/100
= 27450 × 6/100
= 164700/100
= $1647
Thus, Simple Interest = $1647
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 = $3050 + $1647
= $4697
Thus, Amount to be paid = $4697 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 = $3050
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3050 + ($3050 × 9% × 6)
= $3050 + ($3050 ×9/100 × 6)
= $3050 + (3050 × 9 × 6/100)
= $3050 + (27450 × 6/100)
= $3050 + (164700/100)
= $3050 + $1647 = $4697
Thus, Amount (A) to be paid = $4697 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 9%
This, means, $9 per $100 per year
∵ For $100, the simple interest for 1 year = $9
∴ For $1, the simple interest for 1 year = 9/100
∴ For $3050, the simple interest in 1 year
= 9/100 × 3050
= 9 × 3050/100
= 27450/100 = $274.5
Thus, simple interest for 1 year = $274.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $274.5 × 6 = $1647
Thus, Simple Interest (SI) = $1647
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3050 + $1647
= $4697
Thus, Amount to be paid = $4697 Answer
Similar Questions
(1) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 2% simple interest?
(2) Find the amount to be paid if Robert borrowed a sum of $5100 at 9% simple interest for 7 years.
(3) Calculate the amount due if Sarah borrowed a sum of $3850 at 3% simple interest for 3 years.
(4) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 8% simple interest.
(5) Calculate the amount due if Patricia borrowed a sum of $3150 at 4% simple interest for 3 years.
(6) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 9% simple interest.
(7) Michelle had to pay $5692.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(8) James took a loan of $4000 at the rate of 8% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.
(9) Linda took a loan of $4700 at the rate of 10% simple interest per annum. If he paid an amount of $7990 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 9% simple interest for 3 years.