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) Calculate the amount due if Joseph borrowed a sum of $3700 at 8% simple interest for 3 years.
(2) In how much time a principal of $3100 will amount to $3472 at a simple interest of 4% per annum?
(3) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 6% simple interest.
(4) How much loan did Deborah borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8940 to clear it?
(5) Christopher took a loan of $6000 at the rate of 9% simple interest per annum. If he paid an amount of $11400 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 2% simple interest.
(7) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 8% simple interest?
(8) Find the amount to be paid if Richard borrowed a sum of $5600 at 2% simple interest for 7 years.
(9) If Andrew paid $5184 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(10) David took a loan of $4800 at the rate of 7% simple interest per annum. If he paid an amount of $7824 to clear the loan, then find the time period of the loan.