Question:
What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 9% simple interest?
Correct Answer
$5467
Solution And Explanation
Solution
Given,
Principal (P) = $3550
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) = $3550 × 9% × 6
= $3550 ×9/100 × 6
= 3550 × 9 × 6/100
= 31950 × 6/100
= 191700/100
= $1917
Thus, Simple Interest = $1917
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 = $3550 + $1917
= $5467
Thus, Amount to be paid = $5467 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 = $3550
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3550 + ($3550 × 9% × 6)
= $3550 + ($3550 ×9/100 × 6)
= $3550 + (3550 × 9 × 6/100)
= $3550 + (31950 × 6/100)
= $3550 + (191700/100)
= $3550 + $1917 = $5467
Thus, Amount (A) to be paid = $5467 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 $3550, the simple interest in 1 year
= 9/100 × 3550
= 9 × 3550/100
= 31950/100 = $319.5
Thus, simple interest for 1 year = $319.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $319.5 × 6 = $1917
Thus, Simple Interest (SI) = $1917
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3550 + $1917
= $5467
Thus, Amount to be paid = $5467 Answer
Similar Questions
(1) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 7% simple interest?
(2) Calculate the amount due if Mary borrowed a sum of $3050 at 3% simple interest for 3 years.
(3) If Lisa paid $4860 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(4) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $6364 to clear the loan, then find the time period of the loan.
(5) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 2% simple interest?
(6) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $7310 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due if Karen borrowed a sum of $3950 at 9% simple interest for 3 years.
(8) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 10% simple interest?
(9) Calculate the amount due if James borrowed a sum of $3000 at 5% simple interest for 3 years.
(10) If Patricia paid $3780 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.