Question:
( 1 of 10 ) Find the amount to be paid if Jessica borrowed a sum of $5750 at 6% simple interest for 7 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$5750
Correct Answer
$8165
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 6% × 7
= $5750 ×6/100 × 7
= 5750 × 6 × 7/100
= 34500 × 7/100
= 241500/100
= $2415
Thus, Simple Interest = $2415
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 = $5750 + $2415
= $8165
Thus, Amount to be paid = $8165 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 = $5750
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 7 years
Thus, Amount (A)
= $5750 + ($5750 × 6% × 7)
= $5750 + ($5750 ×6/100 × 7)
= $5750 + (5750 × 6 × 7/100)
= $5750 + (34500 × 7/100)
= $5750 + (241500/100)
= $5750 + $2415 = $8165
Thus, Amount (A) to be paid = $8165 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 $5750, the simple interest in 1 year
= 6/100 × 5750
= 6 × 5750/100
= 34500/100 = $345
Thus, simple interest for 1 year = $345
Therefore, simple interest for 7 years
= Simple interest for 1 year × 7
= $345 × 7 = $2415
Thus, Simple Interest (SI) = $2415
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $2415
= $8165
Thus, Amount to be paid = $8165 Answer
Similar Questions
(1) Barbara took a loan of $5100 at the rate of 9% simple interest per annum. If he paid an amount of $8772 to clear the loan, then find the time period of the loan.
(2) Find the amount to be paid if Susan borrowed a sum of $5650 at 8% simple interest for 8 years.
(3) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $8580 to clear the loan, then find the time period of the loan.
(4) Charles took a loan of $5800 at the rate of 9% simple interest per annum. If he paid an amount of $11020 to clear the loan, then find the time period of the loan.
(5) Patricia had to pay $3528 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(6) Richard took a loan of $5200 at the rate of 7% simple interest per annum. If he paid an amount of $7748 to clear the loan, then find the time period of the loan.
(7) How much loan did Laura borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $9027.5 to clear it?
(8) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6216 to clear the loan, then find the time period of the loan.
(9) Sandra took a loan of $6900 at the rate of 6% simple interest per annum. If he paid an amount of $10212 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if Linda borrowed a sum of $3350 at 2% simple interest for 4 years.