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 will be due after 2 years if Matthew borrowed a sum of $3600 at a 6% simple interest?
(2) Find the amount to be paid if William borrowed a sum of $5500 at 6% simple interest for 8 years.
(3) Anthony took a loan of $6600 at the rate of 9% simple interest per annum. If he paid an amount of $10164 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Linda borrowed a sum of $3350 at 4% simple interest for 4 years.
(5) Joshua had to pay $5194 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(6) Find the amount to be paid if Mary borrowed a sum of $5050 at 6% simple interest for 7 years.
(7) What amount does John have to pay after 6 years if he takes a loan of $3200 at 8% simple interest?
(8) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 10% simple interest?
(9) How much loan did Lisa borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7562.5 to clear it?
(10) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 7% simple interest?