Question:
What amount does Susan have to pay after 6 years if he takes a loan of $3650 at 10% simple interest?
Correct Answer
$5840
Solution And Explanation
Solution
Given,
Principal (P) = $3650
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) = $3650 × 10% × 6
= $3650 ×10/100 × 6
= 3650 × 10 × 6/100
= 36500 × 6/100
= 219000/100
= $2190
Thus, Simple Interest = $2190
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 = $3650 + $2190
= $5840
Thus, Amount to be paid = $5840 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 = $3650
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 6 years
Thus, Amount (A)
= $3650 + ($3650 × 10% × 6)
= $3650 + ($3650 ×10/100 × 6)
= $3650 + (3650 × 10 × 6/100)
= $3650 + (36500 × 6/100)
= $3650 + (219000/100)
= $3650 + $2190 = $5840
Thus, Amount (A) to be paid = $5840 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 $3650, the simple interest in 1 year
= 10/100 × 3650
= 10 × 3650/100
= 36500/100 = $365
Thus, simple interest for 1 year = $365
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $365 × 6 = $2190
Thus, Simple Interest (SI) = $2190
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3650 + $2190
= $5840
Thus, Amount to be paid = $5840 Answer
Similar Questions
(1) How much loan did Melissa borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $9187.5 to clear it?
(2) Margaret took a loan of $6700 at the rate of 6% simple interest per annum. If he paid an amount of $9112 to clear the loan, then find the time period of the loan.
(3) How much loan did Susan borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7062.5 to clear it?
(4) Patricia took a loan of $4300 at the rate of 9% simple interest per annum. If he paid an amount of $8170 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 8% simple interest.
(6) Find the amount to be paid if Joseph borrowed a sum of $5700 at 6% simple interest for 7 years.
(7) James took a loan of $4000 at the rate of 7% simple interest per annum. If he paid an amount of $6800 to clear the loan, then find the time period of the loan.
(8) If David paid $3944 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 8% simple interest.
(10) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 10% simple interest?