Question:
( 1 of 10 ) Find the amount to be paid if Patricia borrowed a sum of $5150 at 10% simple interest for 7 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$5150
Correct Answer
$8755
Solution And Explanation
Solution
Given,
Principal (P) = $5150
Rate of Simple Interest (SI) = 10%
Time (t) = 7 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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 × 10% × 7
= $5150 ×10/100 × 7
= 5150 × 10 × 7/100
= 51500 × 7/100
= 360500/100
= $3605
Thus, Simple Interest = $3605
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 + $3605
= $8755
Thus, Amount to be paid = $8755 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) = 10%
And, Time (t) = 7 years
Thus, Amount (A)
= $5150 + ($5150 × 10% × 7)
= $5150 + ($5150 ×10/100 × 7)
= $5150 + (5150 × 10 × 7/100)
= $5150 + (51500 × 7/100)
= $5150 + (360500/100)
= $5150 + $3605 = $8755
Thus, Amount (A) to be paid = $8755 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $5150, the simple interest in 1 year
= 10/100 × 5150
= 10 × 5150/100
= 51500/100 = $515
Thus, simple interest for 1 year = $515
Therefore, simple interest for 7 years
= Simple interest for 1 year × 7
= $515 × 7 = $3605
Thus, Simple Interest (SI) = $3605
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5150 + $3605
= $8755
Thus, Amount to be paid = $8755 Answer
Similar Questions
(1) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 6% simple interest.
(2) Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $8145 to clear the loan, then find the time period of the loan.
(3) Nancy took a loan of $6300 at the rate of 7% simple interest per annum. If he paid an amount of $10269 to clear the loan, then find the time period of the loan.
(4) If William paid $3780 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(5) William took a loan of $5000 at the rate of 7% simple interest per annum. If he paid an amount of $7100 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due if Linda borrowed a sum of $3350 at 9% simple interest for 4 years.
(7) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 10% simple interest for 8 years.
(8) If Mark paid $4752 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(9) John took a loan of $4400 at the rate of 10% simple interest per annum. If he paid an amount of $8360 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if John borrowed a sum of $3200 at 3% simple interest for 3 years.