Question:
( 1 of 10 ) Find the amount to be paid if Joseph borrowed a sum of $5700 at 5% simple interest for 7 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$5700
Correct Answer
$7695
Solution And Explanation
Solution
Given,
Principal (P) = $5700
Rate of Simple Interest (SI) = 5%
Time (t) = 7 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 5% simple interest means, Rate of Simple Interest (SI) is 5% 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) = $5700 × 5% × 7
= $5700 ×5/100 × 7
= 5700 × 5 × 7/100
= 28500 × 7/100
= 199500/100
= $1995
Thus, Simple Interest = $1995
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 = $5700 + $1995
= $7695
Thus, Amount to be paid = $7695 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 = $5700
Rate of Simple Interest (SI) or (R) = 5%
And, Time (t) = 7 years
Thus, Amount (A)
= $5700 + ($5700 × 5% × 7)
= $5700 + ($5700 ×5/100 × 7)
= $5700 + (5700 × 5 × 7/100)
= $5700 + (28500 × 7/100)
= $5700 + (199500/100)
= $5700 + $1995 = $7695
Thus, Amount (A) to be paid = $7695 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 5%
This, means, $5 per $100 per year
∵ For $100, the simple interest for 1 year = $5
∴ For $1, the simple interest for 1 year = 5/100
∴ For $5700, the simple interest in 1 year
= 5/100 × 5700
= 5 × 5700/100
= 28500/100 = $285
Thus, simple interest for 1 year = $285
Therefore, simple interest for 7 years
= Simple interest for 1 year × 7
= $285 × 7 = $1995
Thus, Simple Interest (SI) = $1995
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5700 + $1995
= $7695
Thus, Amount to be paid = $7695 Answer
Similar Questions
(1) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 6% simple interest?
(2) What amount does Karen have to pay after 5 years if he takes a loan of $3950 at 8% simple interest?
(3) How much loan did Daniel borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7320 to clear it?
(4) Margaret took a loan of $6700 at the rate of 6% simple interest per annum. If he paid an amount of $9514 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if Patricia borrowed a sum of $5150 at 7% simple interest for 8 years.
(6) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 10% simple interest.
(7) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $6512 to clear the loan, then find the time period of the loan.
(8) If Donald paid $5400 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(9) Sarah took a loan of $5700 at the rate of 9% simple interest per annum. If he paid an amount of $8778 to clear the loan, then find the time period of the loan.
(10) What amount does Jessica have to pay after 5 years if he takes a loan of $3750 at 10% simple interest?