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) What amount does Thomas have to pay after 5 years if he takes a loan of $3800 at 4% simple interest?
(2) Calculate the amount due if Mary borrowed a sum of $3050 at 10% simple interest for 4 years.
(3) How much loan did William borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6050 to clear it?
(4) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 6% simple interest?
(5) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 8% simple interest for 4 years.
(6) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $13110 to clear the loan, then find the time period of the loan.
(7) Nancy took a loan of $6300 at the rate of 6% simple interest per annum. If he paid an amount of $10080 to clear the loan, then find the time period of the loan.
(8) Anthony took a loan of $6600 at the rate of 10% simple interest per annum. If he paid an amount of $11220 to clear the loan, then find the time period of the loan.
(9) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 9% simple interest?
(10) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 4% simple interest.