Simple Interest
MCQs Math


Question:     Find the amount to be paid if Charles borrowed a sum of $5900 at 5% simple interest for 7 years.


Correct Answer  $7965

Solution And Explanation

Solution

Given,

Principal (P) = $5900

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) = $5900 × 5% × 7

= $5900 ×5/100 × 7

= 5900 × 5 × 7/100

= 29500 × 7/100

= 206500/100

= $2065

Thus, Simple Interest = $2065

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 = $5900 + $2065

= $7965

Thus, Amount to be paid = $7965 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 = $5900

Rate of Simple Interest (SI) or (R) = 5%

And, Time (t) = 7 years

Thus, Amount (A)

= $5900 + ($5900 × 5% × 7)

= $5900 + ($5900 ×5/100 × 7)

= $5900 + (5900 × 5 × 7/100)

= $5900 + (29500 × 7/100)

= $5900 + (206500/100)

= $5900 + $2065 = $7965

Thus, Amount (A) to be paid = $7965 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 $5900, the simple interest in 1 year

= 5/100 × 5900

= 5 × 5900/100

= 29500/100 = $295

Thus, simple interest for 1 year = $295

Therefore, simple interest for 7 years

= Simple interest for 1 year × 7

= $295 × 7 = $2065

Thus, Simple Interest (SI) = $2065

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5900 + $2065

= $7965

Thus, Amount to be paid = $7965 Answer


Similar Questions

(1) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 3% simple interest.

(2) Joseph took a loan of $5400 at the rate of 9% simple interest per annum. If he paid an amount of $9774 to clear the loan, then find the time period of the loan.

(3) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 8% simple interest for 3 years.

(4) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 5% simple interest?

(5) Karen had to pay $4542.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.

(6) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 6% simple interest for 8 years.

(7) Find the amount to be paid if Barbara borrowed a sum of $5550 at 5% simple interest for 8 years.

(8) Donald took a loan of $7000 at the rate of 6% simple interest per annum. If he paid an amount of $9940 to clear the loan, then find the time period of the loan.

(9) Find the amount to be paid if Robert borrowed a sum of $5100 at 5% simple interest for 7 years.

(10) Barbara took a loan of $5100 at the rate of 10% simple interest per annum. If he paid an amount of $9180 to clear the loan, then find the time period of the loan.


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