Question:
( 2 of 10 ) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 10% simple interest?
(A) 258.39 km
(B) 215.33 km
(C) 172.26 km
(D) 137.81 km
You selected
$3300
Correct Answer
$5280
Solution And Explanation
Solution
Given,
Principal (P) = $3300
Rate of Simple Interest (SI) = 10%
Time (t) = 6 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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) = $3300 × 10% × 6
= $3300 ×10/100 × 6
= 3300 × 10 × 6/100
= 33000 × 6/100
= 198000/100
= $1980
Thus, Simple Interest = $1980
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 = $3300 + $1980
= $5280
Thus, Amount to be paid = $5280 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 = $3300
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 6 years
Thus, Amount (A)
= $3300 + ($3300 × 10% × 6)
= $3300 + ($3300 ×10/100 × 6)
= $3300 + (3300 × 10 × 6/100)
= $3300 + (33000 × 6/100)
= $3300 + (198000/100)
= $3300 + $1980 = $5280
Thus, Amount (A) to be paid = $5280 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $3300, the simple interest in 1 year
= 10/100 × 3300
= 10 × 3300/100
= 33000/100 = $330
Thus, simple interest for 1 year = $330
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $330 × 6 = $1980
Thus, Simple Interest (SI) = $1980
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3300 + $1980
= $5280
Thus, Amount to be paid = $5280 Answer
Similar Questions
(1) Nancy had to pay $4772.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(2) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 8% simple interest?
(3) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 6% simple interest.
(4) If Anthony paid $4988 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(5) If Michelle paid $5940 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(6) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $7216 to clear the loan, then find the time period of the loan.
(7) Donald took a loan of $7000 at the rate of 8% simple interest per annum. If he paid an amount of $11480 to clear the loan, then find the time period of the loan.
(8) Mary took a loan of $4100 at the rate of 8% simple interest per annum. If he paid an amount of $6396 to clear the loan, then find the time period of the loan.
(9) What amount will be due after 2 years if Donald borrowed a sum of $3750 at a 4% simple interest?
(10) Find the amount to be paid if John borrowed a sum of $5200 at 7% simple interest for 7 years.