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) Find the amount to be paid if John borrowed a sum of $5200 at 7% simple interest for 8 years.
(2) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $10320 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due if David borrowed a sum of $3400 at 4% simple interest for 4 years.
(4) What amount does David have to pay after 5 years if he takes a loan of $3400 at 8% simple interest?
(5) If Matthew paid $4704 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(6) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 5% simple interest.
(7) How much loan did Mary borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $5555 to clear it?
(8) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 5% simple interest for 8 years.
(9) Find the amount to be paid if Joseph borrowed a sum of $5700 at 8% simple interest for 8 years.
(10) Find the amount to be paid if Patricia borrowed a sum of $5150 at 8% simple interest for 8 years.