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) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $10664 to clear the loan, then find the time period of the loan.
(2) Calculate the amount due if William borrowed a sum of $3500 at 9% simple interest for 4 years.
(3) What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 3% simple interest?
(4) In how much time a principal of $3200 will amount to $3520 at a simple interest of 2% per annum?
(5) What amount does Elizabeth have to pay after 6 years if he takes a loan of $3450 at 6% simple interest?
(6) In how much time a principal of $3000 will amount to $3360 at a simple interest of 3% per annum?
(7) Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 4% simple interest.
(8) Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 7% simple interest.
(9) How much loan did David borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6210 to clear it?
(10) How much loan did Ronald borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8625 to clear it?