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) Patricia took a loan of $4300 at the rate of 10% simple interest per annum. If he paid an amount of $8600 to clear the loan, then find the time period of the loan.
(2) What amount will be due after 2 years if Daniel borrowed a sum of $3550 at a 9% simple interest?
(3) Calculate the amount due if Patricia borrowed a sum of $3150 at 10% simple interest for 3 years.
(4) Calculate the amount due if David borrowed a sum of $3400 at 2% simple interest for 3 years.
(5) If Christopher borrowed $4000 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(6) Calculate the amount due after 10 years if David borrowed a sum of $5400 at a rate of 9% simple interest.
(7) Calculate the amount due if Charles borrowed a sum of $3900 at 3% simple interest for 3 years.
(8) What amount does Elizabeth have to pay after 6 years if he takes a loan of $3450 at 6% simple interest?
(9) Richard took a loan of $5200 at the rate of 6% simple interest per annum. If he paid an amount of $7696 to clear the loan, then find the time period of the loan.
(10) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 2% simple interest?