Question:
What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 9% simple interest?
Correct Answer
$5852
Solution And Explanation
Solution
Given,
Principal (P) = $3800
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) = $3800 × 9% × 6
= $3800 ×9/100 × 6
= 3800 × 9 × 6/100
= 34200 × 6/100
= 205200/100
= $2052
Thus, Simple Interest = $2052
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 = $3800 + $2052
= $5852
Thus, Amount to be paid = $5852 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 = $3800
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3800 + ($3800 × 9% × 6)
= $3800 + ($3800 ×9/100 × 6)
= $3800 + (3800 × 9 × 6/100)
= $3800 + (34200 × 6/100)
= $3800 + (205200/100)
= $3800 + $2052 = $5852
Thus, Amount (A) to be paid = $5852 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 $3800, the simple interest in 1 year
= 9/100 × 3800
= 9 × 3800/100
= 34200/100 = $342
Thus, simple interest for 1 year = $342
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $342 × 6 = $2052
Thus, Simple Interest (SI) = $2052
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3800 + $2052
= $5852
Thus, Amount to be paid = $5852 Answer
Similar Questions
(1) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
(2) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.
(3) Calculate the amount due if Susan borrowed a sum of $3650 at 7% simple interest for 3 years.
(4) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 7% simple interest?
(5) Find the amount to be paid if Mary borrowed a sum of $5050 at 4% simple interest for 8 years.
(6) James took a loan of $4000 at the rate of 8% simple interest per annum. If he paid an amount of $6880 to clear the loan, then find the time period of the loan.
(7) How much loan did Laura borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $9027.5 to clear it?
(8) What amount does Robert have to pay after 6 years if he takes a loan of $3100 at 2% simple interest?
(9) Susan took a loan of $5300 at the rate of 7% simple interest per annum. If he paid an amount of $8268 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Jessica borrowed a sum of $5750 at 2% simple interest for 8 years.