Question:
What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 9% simple interest?
Correct Answer
$5544
Solution And Explanation
Solution
Given,
Principal (P) = $3600
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) = $3600 × 9% × 6
= $3600 ×9/100 × 6
= 3600 × 9 × 6/100
= 32400 × 6/100
= 194400/100
= $1944
Thus, Simple Interest = $1944
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 = $3600 + $1944
= $5544
Thus, Amount to be paid = $5544 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 = $3600
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3600 + ($3600 × 9% × 6)
= $3600 + ($3600 ×9/100 × 6)
= $3600 + (3600 × 9 × 6/100)
= $3600 + (32400 × 6/100)
= $3600 + (194400/100)
= $3600 + $1944 = $5544
Thus, Amount (A) to be paid = $5544 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 $3600, the simple interest in 1 year
= 9/100 × 3600
= 9 × 3600/100
= 32400/100 = $324
Thus, simple interest for 1 year = $324
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $324 × 6 = $1944
Thus, Simple Interest (SI) = $1944
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3600 + $1944
= $5544
Thus, Amount to be paid = $5544 Answer
Similar Questions
(1) Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 7% simple interest.
(2) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 8% simple interest.
(3) Nancy took a loan of $6300 at the rate of 7% simple interest per annum. If he paid an amount of $10710 to clear the loan, then find the time period of the loan.
(4) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 3% simple interest?
(5) Michael took a loan of $4600 at the rate of 7% simple interest per annum. If he paid an amount of $6854 to clear the loan, then find the time period of the loan.
(6) Find the amount to be paid if David borrowed a sum of $5400 at 5% simple interest for 8 years.
(7) What amount will be due after 2 years if Charles borrowed a sum of $3450 at a 10% simple interest?
(8) Calculate the amount due if Thomas borrowed a sum of $3800 at 4% simple interest for 3 years.
(9) Sarah took a loan of $5700 at the rate of 8% simple interest per annum. If he paid an amount of $10260 to clear the loan, then find the time period of the loan.
(10) If Patricia paid $3528 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.