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) In how much time a principal of $3200 will amount to $3456 at a simple interest of 2% per annum?
(2) Charles had to pay $4368 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(3) Find the amount to be paid if Susan borrowed a sum of $5650 at 4% simple interest for 7 years.
(4) Calculate the amount due after 10 years if Jessica borrowed a sum of $5750 at a rate of 9% simple interest.
(5) If Christopher paid $4320 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(6) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 8% simple interest.
(7) Christopher took a loan of $6000 at the rate of 8% simple interest per annum. If he paid an amount of $9840 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 3% simple interest.
(9) Find the amount to be paid if Patricia borrowed a sum of $5150 at 5% simple interest for 8 years.
(10) Calculate the amount due if Richard borrowed a sum of $3600 at 2% simple interest for 4 years.