Question:
Find the amount to be paid if Charles borrowed a sum of $5900 at 9% simple interest for 7 years.
Correct Answer
$9617
Solution And Explanation
Solution
Given,
Principal (P) = $5900
Rate of Simple Interest (SI) = 9%
Time (t) = 7 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $5900 × 9% × 7
= $5900 ×9/100 × 7
= 5900 × 9 × 7/100
= 53100 × 7/100
= 371700/100
= $3717
Thus, Simple Interest = $3717
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 = $5900 + $3717
= $9617
Thus, Amount to be paid = $9617 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 = $5900
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 7 years
Thus, Amount (A)
= $5900 + ($5900 × 9% × 7)
= $5900 + ($5900 ×9/100 × 7)
= $5900 + (5900 × 9 × 7/100)
= $5900 + (53100 × 7/100)
= $5900 + (371700/100)
= $5900 + $3717 = $9617
Thus, Amount (A) to be paid = $9617 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 9%
This, means, $9 per $100 per year
∵ For $100, the simple interest for 1 year = $9
∴ For $1, the simple interest for 1 year = 9/100
∴ For $5900, the simple interest in 1 year
= 9/100 × 5900
= 9 × 5900/100
= 53100/100 = $531
Thus, simple interest for 1 year = $531
Therefore, simple interest for 7 years
= Simple interest for 1 year × 7
= $531 × 7 = $3717
Thus, Simple Interest (SI) = $3717
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5900 + $3717
= $9617
Thus, Amount to be paid = $9617 Answer
Similar Questions
(1) Find the amount to be paid if Thomas borrowed a sum of $5800 at 10% simple interest for 8 years.
(2) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 8% simple interest for 7 years.
(3) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 5% simple interest?
(4) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 7% simple interest?
(5) Find the amount to be paid if Joseph borrowed a sum of $5700 at 7% simple interest for 8 years.
(6) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 5% simple interest.
(7) What amount does Barbara have to pay after 5 years if he takes a loan of $3550 at 4% simple interest?
(8) Patricia had to pay $3622.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(9) Daniel took a loan of $6200 at the rate of 9% simple interest per annum. If he paid an amount of $10664 to clear the loan, then find the time period of the loan.
(10) Find the amount to be paid if Linda borrowed a sum of $5350 at 8% simple interest for 7 years.