Simple Interest
MCQs Math


Question:     Find the amount to be paid if Patricia borrowed a sum of $5150 at 7% simple interest for 7 years.


Correct Answer  $7673.5

Solution And Explanation

Solution

Given,

Principal (P) = $5150

Rate of Simple Interest (SI) = 7%

Time (t) = 7 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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) = $5150 × 7% × 7

= $5150 ×7/100 × 7

= 5150 × 7 × 7/100

= 36050 × 7/100

= 252350/100

= $2523.5

Thus, Simple Interest = $2523.5

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 = $5150 + $2523.5

= $7673.5

Thus, Amount to be paid = $7673.5 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 = $5150

Rate of Simple Interest (SI) or (R) = 7%

And, Time (t) = 7 years

Thus, Amount (A)

= $5150 + ($5150 × 7% × 7)

= $5150 + ($5150 ×7/100 × 7)

= $5150 + (5150 × 7 × 7/100)

= $5150 + (36050 × 7/100)

= $5150 + (252350/100)

= $5150 + $2523.5 = $7673.5

Thus, Amount (A) to be paid = $7673.5 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 7%

This, means, $7 per $100 per year

∵ For $100, the simple interest for 1 year = $7

∴ For $1, the simple interest for 1 year = 7/100

∴ For $5150, the simple interest in 1 year

= 7/100 × 5150

= 7 × 5150/100

= 36050/100 = $360.5

Thus, simple interest for 1 year = $360.5

Therefore, simple interest for 7 years

= Simple interest for 1 year × 7

= $360.5 × 7 = $2523.5

Thus, Simple Interest (SI) = $2523.5

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5150 + $2523.5

= $7673.5

Thus, Amount to be paid = $7673.5 Answer


Similar Questions

(1) What amount does Linda have to pay after 6 years if he takes a loan of $3350 at 5% simple interest?

(2) William had to pay $3710 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(3) Find the amount to be paid if Robert borrowed a sum of $5100 at 7% simple interest for 7 years.

(4) Calculate the amount due if Thomas borrowed a sum of $3800 at 8% simple interest for 4 years.

(5) 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.

(6) Michelle had to pay $5247 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.

(7) Calculate the amount due if Richard borrowed a sum of $3600 at 10% simple interest for 3 years.

(8) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $8326 to clear the loan, then find the time period of the loan.

(9) Find the amount to be paid if Richard borrowed a sum of $5600 at 5% simple interest for 7 years.

(10) If Thomas borrowed $3800 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.


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