Question:
What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 9% simple interest?
Correct Answer
$5159
Solution And Explanation
Solution
Given,
Principal (P) = $3350
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) = $3350 × 9% × 6
= $3350 ×9/100 × 6
= 3350 × 9 × 6/100
= 30150 × 6/100
= 180900/100
= $1809
Thus, Simple Interest = $1809
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 = $3350 + $1809
= $5159
Thus, Amount to be paid = $5159 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 = $3350
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3350 + ($3350 × 9% × 6)
= $3350 + ($3350 ×9/100 × 6)
= $3350 + (3350 × 9 × 6/100)
= $3350 + (30150 × 6/100)
= $3350 + (180900/100)
= $3350 + $1809 = $5159
Thus, Amount (A) to be paid = $5159 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 $3350, the simple interest in 1 year
= 9/100 × 3350
= 9 × 3350/100
= 30150/100 = $301.5
Thus, simple interest for 1 year = $301.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $301.5 × 6 = $1809
Thus, Simple Interest (SI) = $1809
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3350 + $1809
= $5159
Thus, Amount to be paid = $5159 Answer
Similar Questions
(1) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 5% simple interest for 7 years.
(2) Calculate the amount due if Karen borrowed a sum of $3950 at 8% simple interest for 3 years.
(3) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 3% simple interest.
(4) Calculate the amount due if James borrowed a sum of $3000 at 5% simple interest for 3 years.
(5) Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $6314 to clear the loan, then find the time period of the loan.
(6) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 4% simple interest?
(7) Sarah had to pay $4081 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(8) Find the amount to be paid if John borrowed a sum of $5200 at 10% simple interest for 7 years.
(9) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 2% simple interest for 8 years.
(10) Daniel took a loan of $6200 at the rate of 7% simple interest per annum. If he paid an amount of $10540 to clear the loan, then find the time period of the loan.