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) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $7152 to clear the loan, then find the time period of the loan.
(2) If Paul paid $5076 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(3) Thomas took a loan of $5600 at the rate of 6% simple interest per annum. If he paid an amount of $8624 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Sarah borrowed a sum of $3850 at 10% simple interest for 4 years.
(5) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 5% simple interest?
(6) Paul had to pay $5405 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(7) What amount does Barbara have to pay after 6 years if he takes a loan of $3550 at 5% simple interest?
(8) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $12400 to clear the loan, then find the time period of the loan.
(9) Kimberly had to pay $5208 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(10) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 5% simple interest?