Question:
What amount does John have to pay after 6 years if he takes a loan of $3200 at 9% simple interest?
Correct Answer
$4928
Solution And Explanation
Solution
Given,
Principal (P) = $3200
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) = $3200 × 9% × 6
= $3200 ×9/100 × 6
= 3200 × 9 × 6/100
= 28800 × 6/100
= 172800/100
= $1728
Thus, Simple Interest = $1728
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 = $3200 + $1728
= $4928
Thus, Amount to be paid = $4928 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 = $3200
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3200 + ($3200 × 9% × 6)
= $3200 + ($3200 ×9/100 × 6)
= $3200 + (3200 × 9 × 6/100)
= $3200 + (28800 × 6/100)
= $3200 + (172800/100)
= $3200 + $1728 = $4928
Thus, Amount (A) to be paid = $4928 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 $3200, the simple interest in 1 year
= 9/100 × 3200
= 9 × 3200/100
= 28800/100 = $288
Thus, simple interest for 1 year = $288
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $288 × 6 = $1728
Thus, Simple Interest (SI) = $1728
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3200 + $1728
= $4928
Thus, Amount to be paid = $4928 Answer
Similar Questions
(1) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 5% simple interest?
(2) Find the amount to be paid if Mary borrowed a sum of $5050 at 9% simple interest for 7 years.
(3) Nancy had to pay $4772.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(4) Anthony took a loan of $6600 at the rate of 10% simple interest per annum. If he paid an amount of $13200 to clear the loan, then find the time period of the loan.
(5) Sarah took a loan of $5700 at the rate of 7% simple interest per annum. If he paid an amount of $8094 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due if James borrowed a sum of $3000 at 2% simple interest for 3 years.
(7) What amount does John have to pay after 5 years if he takes a loan of $3200 at 2% simple interest?
(8) How much loan did Timothy borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9250 to clear it?
(9) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 8% simple interest?
(10) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 5% simple interest?