Question:
Find the amount to be paid if Christopher borrowed a sum of $6000 at 6% simple interest for 7 years.
Correct Answer
$8520
Solution And Explanation
Solution
Given,
Principal (P) = $6000
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) = $6000 × 6% × 7
= $6000 ×6/100 × 7
= 6000 × 6 × 7/100
= 36000 × 7/100
= 252000/100
= $2520
Thus, Simple Interest = $2520
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 = $6000 + $2520
= $8520
Thus, Amount to be paid = $8520 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 = $6000
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 7 years
Thus, Amount (A)
= $6000 + ($6000 × 6% × 7)
= $6000 + ($6000 ×6/100 × 7)
= $6000 + (6000 × 6 × 7/100)
= $6000 + (36000 × 7/100)
= $6000 + (252000/100)
= $6000 + $2520 = $8520
Thus, Amount (A) to be paid = $8520 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 $6000, the simple interest in 1 year
= 6/100 × 6000
= 6 × 6000/100
= 36000/100 = $360
Thus, simple interest for 1 year = $360
Therefore, simple interest for 7 years
= Simple interest for 1 year × 7
= $360 × 7 = $2520
Thus, Simple Interest (SI) = $2520
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $6000 + $2520
= $8520
Thus, Amount to be paid = $8520 Answer
Similar Questions
(1) Calculate the amount due if William borrowed a sum of $3500 at 6% simple interest for 4 years.
(2) Margaret took a loan of $6700 at the rate of 9% simple interest per annum. If he paid an amount of $12730 to clear the loan, then find the time period of the loan.
(3) What amount will be due after 2 years if James borrowed a sum of $3000 at a 8% simple interest?
(4) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 7% simple interest?
(5) Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 2% simple interest.
(6) Calculate the amount due if Joseph borrowed a sum of $3700 at 8% simple interest for 4 years.
(7) Find the amount to be paid if Joseph borrowed a sum of $5700 at 8% simple interest for 8 years.
(8) Sarah took a loan of $5700 at the rate of 10% simple interest per annum. If he paid an amount of $9120 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 9% simple interest.
(10) Calculate the amount due if Sarah borrowed a sum of $3850 at 7% simple interest for 3 years.