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) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 5% simple interest.
(2) Richard took a loan of $5200 at the rate of 8% simple interest per annum. If he paid an amount of $7696 to clear the loan, then find the time period of the loan.
(3) Find the amount to be paid if Susan borrowed a sum of $5650 at 3% simple interest for 8 years.
(4) Calculate the amount due after 10 years if Charles borrowed a sum of $5900 at a rate of 6% simple interest.
(5) How much loan did Joseph borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6555 to clear it?
(6) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 6% simple interest?
(7) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 10% simple interest?
(8) Mark took a loan of $6800 at the rate of 7% simple interest per annum. If he paid an amount of $9656 to clear the loan, then find the time period of the loan.
(9) Christopher took a loan of $6000 at the rate of 6% simple interest per annum. If he paid an amount of $9240 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Jessica borrowed a sum of $5750 at 4% simple interest for 8 years.