Question:
What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 10% simple interest?
Correct Answer
$5360
Solution And Explanation
Solution
Given,
Principal (P) = $3350
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) = $3350 × 10% × 6
= $3350 ×10/100 × 6
= 3350 × 10 × 6/100
= 33500 × 6/100
= 201000/100
= $2010
Thus, Simple Interest = $2010
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 = $3350 + $2010
= $5360
Thus, Amount to be paid = $5360 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 = $3350
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 6 years
Thus, Amount (A)
= $3350 + ($3350 × 10% × 6)
= $3350 + ($3350 ×10/100 × 6)
= $3350 + (3350 × 10 × 6/100)
= $3350 + (33500 × 6/100)
= $3350 + (201000/100)
= $3350 + $2010 = $5360
Thus, Amount (A) to be paid = $5360 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 $3350, the simple interest in 1 year
= 10/100 × 3350
= 10 × 3350/100
= 33500/100 = $335
Thus, simple interest for 1 year = $335
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $335 × 6 = $2010
Thus, Simple Interest (SI) = $2010
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3350 + $2010
= $5360
Thus, Amount to be paid = $5360 Answer
Similar Questions
(1) Richard had to pay $3924 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(2) Donald took a loan of $7000 at the rate of 6% simple interest per annum. If he paid an amount of $9940 to clear the loan, then find the time period of the loan.
(3) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 10% simple interest?
(4) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $9672 to clear the loan, then find the time period of the loan.
(5) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 4% simple interest?
(6) Find the amount to be paid if Sarah borrowed a sum of $5850 at 4% simple interest for 7 years.
(7) Calculate the amount due if Karen borrowed a sum of $3950 at 5% simple interest for 4 years.
(8) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $6776 to clear the loan, then find the time period of the loan.
(9) Jessica took a loan of $5500 at the rate of 10% simple interest per annum. If he paid an amount of $9350 to clear the loan, then find the time period of the loan.
(10) If Betty paid $4760 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.