Question:
What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 10% simple interest?
Correct Answer
$6000
Solution And Explanation
Solution
Given,
Principal (P) = $3750
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) = $3750 × 10% × 6
= $3750 ×10/100 × 6
= 3750 × 10 × 6/100
= 37500 × 6/100
= 225000/100
= $2250
Thus, Simple Interest = $2250
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 = $3750 + $2250
= $6000
Thus, Amount to be paid = $6000 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 = $3750
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 6 years
Thus, Amount (A)
= $3750 + ($3750 × 10% × 6)
= $3750 + ($3750 ×10/100 × 6)
= $3750 + (3750 × 10 × 6/100)
= $3750 + (37500 × 6/100)
= $3750 + (225000/100)
= $3750 + $2250 = $6000
Thus, Amount (A) to be paid = $6000 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 $3750, the simple interest in 1 year
= 10/100 × 3750
= 10 × 3750/100
= 37500/100 = $375
Thus, simple interest for 1 year = $375
Therefore, simple interest for 6 years
= Simple interest for 1 year × 6
= $375 × 6 = $2250
Thus, Simple Interest (SI) = $2250
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $3750 + $2250
= $6000
Thus, Amount to be paid = $6000 Answer
Similar Questions
(1) Find the amount to be paid if Sarah borrowed a sum of $5850 at 10% simple interest for 8 years.
(2) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 3% simple interest.
(3) If Sarah paid $4158 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(4) Find the amount to be paid if Robert borrowed a sum of $5100 at 5% simple interest for 8 years.
(5) Calculate the amount due after 9 years if Thomas borrowed a sum of $5800 at a rate of 9% simple interest.
(6) What amount does Patricia have to pay after 6 years if he takes a loan of $3150 at 4% simple interest?
(7) What amount will be due after 2 years if Andrew borrowed a sum of $3900 at a 4% simple interest?
(8) Betty took a loan of $6500 at the rate of 9% simple interest per annum. If he paid an amount of $11180 to clear the loan, then find the time period of the loan.
(9) Thomas took a loan of $5600 at the rate of 9% simple interest per annum. If he paid an amount of $9128 to clear the loan, then find the time period of the loan.
(10) Sandra took a loan of $6900 at the rate of 6% simple interest per annum. If he paid an amount of $10626 to clear the loan, then find the time period of the loan.