Question:
Find the amount to be paid if Linda borrowed a sum of $5350 at 6% simple interest for 7 years.
Correct Answer
$7597
Solution And Explanation
Solution
Given,
Principal (P) = $5350
Rate of Simple Interest (SI) = 6%
Time (t) = 7 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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) = $5350 × 6% × 7
= $5350 ×6/100 × 7
= 5350 × 6 × 7/100
= 32100 × 7/100
= 224700/100
= $2247
Thus, Simple Interest = $2247
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 = $5350 + $2247
= $7597
Thus, Amount to be paid = $7597 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 = $5350
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 7 years
Thus, Amount (A)
= $5350 + ($5350 × 6% × 7)
= $5350 + ($5350 ×6/100 × 7)
= $5350 + (5350 × 6 × 7/100)
= $5350 + (32100 × 7/100)
= $5350 + (224700/100)
= $5350 + $2247 = $7597
Thus, Amount (A) to be paid = $7597 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $5350, the simple interest in 1 year
= 6/100 × 5350
= 6 × 5350/100
= 32100/100 = $321
Thus, simple interest for 1 year = $321
Therefore, simple interest for 7 years
= Simple interest for 1 year × 7
= $321 × 7 = $2247
Thus, Simple Interest (SI) = $2247
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $2247
= $7597
Thus, Amount to be paid = $7597 Answer
Similar Questions
(1) Calculate the amount due if Barbara borrowed a sum of $3550 at 7% simple interest for 3 years.
(2) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 10% simple interest.
(3) Joseph took a loan of $5400 at the rate of 9% simple interest per annum. If he paid an amount of $9288 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Charles borrowed a sum of $5900 at 3% simple interest for 7 years.
(5) Find the amount to be paid if Richard borrowed a sum of $5600 at 5% simple interest for 7 years.
(6) What amount will be due after 2 years if David borrowed a sum of $3200 at a 6% simple interest?
(7) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 8% simple interest.
(8) What amount will be due after 2 years if Matthew borrowed a sum of $3600 at a 7% simple interest?
(9) Calculate the amount due if Linda borrowed a sum of $3350 at 4% simple interest for 3 years.
(10) Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $9548 to clear the loan, then find the time period of the loan.