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 10% simple interest.
(2) Find the amount to be paid if Michael borrowed a sum of $5300 at 7% simple interest for 7 years.
(3) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $8195 to clear the loan, then find the time period of the loan.
(4) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 10% simple interest?
(5) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 6% simple interest?
(6) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 3% simple interest.
(7) Calculate the amount due if Karen borrowed a sum of $3950 at 2% simple interest for 3 years.
(8) In how much time a principal of $3100 will amount to $3472 at a simple interest of 3% per annum?
(9) Calculate the amount due after 9 years if Susan borrowed a sum of $5650 at a rate of 2% simple interest.
(10) William took a loan of $5000 at the rate of 7% simple interest per annum. If he paid an amount of $8150 to clear the loan, then find the time period of the loan.