Question:
What amount does Karen have to pay after 6 years if he takes a loan of $3950 at 9% simple interest?
Correct Answer
$6083
Solution And Explanation
Solution
Given,
Principal (P) = $3950
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) = $3950 × 9% × 6
= $3950 ×9/100 × 6
= 3950 × 9 × 6/100
= 35550 × 6/100
= 213300/100
= $2133
Thus, Simple Interest = $2133
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 = $3950 + $2133
= $6083
Thus, Amount to be paid = $6083 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 = $3950
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 6 years
Thus, Amount (A)
= $3950 + ($3950 × 9% × 6)
= $3950 + ($3950 ×9/100 × 6)
= $3950 + (3950 × 9 × 6/100)
= $3950 + (35550 × 6/100)
= $3950 + (213300/100)
= $3950 + $2133 = $6083
Thus, Amount (A) to be paid = $6083 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 $3950, the simple interest in 1 year
= 9/100 × 3950
= 9 × 3950/100
= 35550/100 = $355.5
Thus, simple interest for 1 year = $355.5
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $355.5 × 6 = $2133
Thus, Simple Interest (SI) = $2133
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3950 + $2133
= $6083
Thus, Amount to be paid = $6083 Answer
Similar Questions
(1) Calculate the amount due if Christopher borrowed a sum of $4000 at 10% simple interest for 3 years.
(2) Find the amount to be paid if Richard borrowed a sum of $5600 at 9% simple interest for 8 years.
(3) Calculate the amount due if Robert borrowed a sum of $3100 at 9% simple interest for 3 years.
(4) How much loan did Jeffrey borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $9360 to clear it?
(5) What amount does Sarah have to pay after 5 years if he takes a loan of $3850 at 9% simple interest?
(6) Calculate the amount due if Susan borrowed a sum of $3650 at 4% simple interest for 4 years.
(7) Emily had to pay $5177.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(8) Thomas took a loan of $5600 at the rate of 7% simple interest per annum. If he paid an amount of $9128 to clear the loan, then find the time period of the loan.
(9) In how much time a principal of $3200 will amount to $3584 at a simple interest of 4% per annum?
(10) Susan had to pay $3869 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.