Question:
( 1 of 10 ) Find the amount to be paid if Robert borrowed a sum of $5100 at 3% simple interest for 7 years.
(A) 618 1/11% या 618.09%
(B) 927 1/11% या 927.09%
(C) 154 1/11% या 154.09%
(D) 309 1/11% या 309.09%
You selected
$5100
Correct Answer
$6171
Solution And Explanation
Solution
Given,
Principal (P) = $5100
Rate of Simple Interest (SI) = 3%
Time (t) = 7 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% 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) = $5100 × 3% × 7
= $5100 ×3/100 × 7
= 5100 × 3 × 7/100
= 15300 × 7/100
= 107100/100
= $1071
Thus, Simple Interest = $1071
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 = $5100 + $1071
= $6171
Thus, Amount to be paid = $6171 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 = $5100
Rate of Simple Interest (SI) or (R) = 3%
And, Time (t) = 7 years
Thus, Amount (A)
= $5100 + ($5100 × 3% × 7)
= $5100 + ($5100 ×3/100 × 7)
= $5100 + (5100 × 3 × 7/100)
= $5100 + (15300 × 7/100)
= $5100 + (107100/100)
= $5100 + $1071 = $6171
Thus, Amount (A) to be paid = $6171 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 3%
This, means, $3 per $100 per year
∵ For $100, the simple interest for 1 year = $3
∴ For $1, the simple interest for 1 year = 3/100
∴ For $5100, the simple interest in 1 year
= 3/100 × 5100
= 3 × 5100/100
= 15300/100 = $153
Thus, simple interest for 1 year = $153
Therefore, simple interest for 7 years
= Simple interest for 1 year × 7
= $153 × 7 = $1071
Thus, Simple Interest (SI) = $1071
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5100 + $1071
= $6171
Thus, Amount to be paid = $6171 Answer
Similar Questions
(1) What amount does William have to pay after 6 years if he takes a loan of $3500 at 5% simple interest?
(2) Anthony took a loan of $6600 at the rate of 8% simple interest per annum. If he paid an amount of $10296 to clear the loan, then find the time period of the loan.
(3) If Betty paid $4590 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(4) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 6% simple interest.
(5) If Kimberly paid $5022 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 Michael borrowed a sum of $5300 at a rate of 4% simple interest.
(7) Calculate the amount due after 10 years if Mary borrowed a sum of $5050 at a rate of 3% simple interest.
(8) What amount does Christopher have to pay after 6 years if he takes a loan of $4000 at 4% simple interest?
(9) What amount does James have to pay after 5 years if he takes a loan of $3000 at 10% simple interest?
(10) Barbara took a loan of $5100 at the rate of 7% simple interest per annum. If he paid an amount of $8670 to clear the loan, then find the time period of the loan.