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) If Susan borrowed $3650 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(2) Joseph took a loan of $5400 at the rate of 6% simple interest per annum. If he paid an amount of $7344 to clear the loan, then find the time period of the loan.
(3) How much loan did Thomas borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7250 to clear it?
(4) Find the amount to be paid if Richard borrowed a sum of $5600 at 10% simple interest for 8 years.
(5) Find the amount to be paid if Thomas borrowed a sum of $5800 at 8% simple interest for 7 years.
(6) Elizabeth took a loan of $4900 at the rate of 6% simple interest per annum. If he paid an amount of $7252 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 10% simple interest.
(8) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 6% simple interest.
(9) Elizabeth took a loan of $4900 at the rate of 9% simple interest per annum. If he paid an amount of $9310 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 8% simple interest.