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) Calculate the amount due after 10 years if Michael borrowed a sum of $5300 at a rate of 9% simple interest.
(2) Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $9690 to clear the loan, then find the time period of the loan.
(3) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 7% simple interest?
(4) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $8965 to clear the loan, then find the time period of the loan.
(5) Lisa had to pay $4414.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(6) Calculate the amount due if Michael borrowed a sum of $3300 at 4% simple interest for 4 years.
(7) Calculate the amount due if Susan borrowed a sum of $3650 at 4% simple interest for 3 years.
(8) Robert took a loan of $4200 at the rate of 8% simple interest per annum. If he paid an amount of $6552 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 10 years if Susan borrowed a sum of $5650 at a rate of 7% simple interest.
(10) James took a loan of $4000 at the rate of 9% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.