Question:
What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 9% simple interest?
Correct Answer
$5621
Solution And Explanation
Solution
Given,
Principal (P) = $3650
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) = $3650 × 9% × 6
= $3650 ×9/100 × 6
= 3650 × 9 × 6/100
= 32850 × 6/100
= 197100/100
= $1971
Thus, Simple Interest = $1971
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 = $3650 + $1971
= $5621
Thus, Amount to be paid = $5621 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 = $3650
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3650 + ($3650 × 9% × 6)
= $3650 + ($3650 ×9/100 × 6)
= $3650 + (3650 × 9 × 6/100)
= $3650 + (32850 × 6/100)
= $3650 + (197100/100)
= $3650 + $1971 = $5621
Thus, Amount (A) to be paid = $5621 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 $3650, the simple interest in 1 year
= 9/100 × 3650
= 9 × 3650/100
= 32850/100 = $328.5
Thus, simple interest for 1 year = $328.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $328.5 × 6 = $1971
Thus, Simple Interest (SI) = $1971
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3650 + $1971
= $5621
Thus, Amount to be paid = $5621 Answer
Similar Questions
(1) What amount does David have to pay after 6 years if he takes a loan of $3400 at 8% simple interest?
(2) Calculate the amount due if Mary borrowed a sum of $3050 at 4% simple interest for 3 years.
(3) Margaret took a loan of $6700 at the rate of 10% simple interest per annum. If he paid an amount of $10720 to clear the loan, then find the time period of the loan.
(4) Richard took a loan of $5200 at the rate of 9% simple interest per annum. If he paid an amount of $8944 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if William borrowed a sum of $3500 at 5% simple interest for 4 years.
(6) Linda took a loan of $4700 at the rate of 9% simple interest per annum. If he paid an amount of $7661 to clear the loan, then find the time period of the loan.
(7) How much loan did Joseph borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6270 to clear it?
(8) If Joseph paid $4292 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 9% simple interest?
(10) Calculate the amount due after 10 years if Karen borrowed a sum of $5950 at a rate of 5% simple interest.