Question:
Find the amount to be paid if Charles borrowed a sum of $5900 at 3% simple interest for 8 years.
Correct Answer
$7316
Solution And Explanation
Solution
Given,
Principal (P) = $5900
Rate of Simple Interest (SI) = 3%
Time (t) = 8 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% 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 × 3% × 8
= $5900 ×3/100 × 8
= 5900 × 3 × 8/100
= 17700 × 8/100
= 141600/100
= $1416
Thus, Simple Interest = $1416
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 + $1416
= $7316
Thus, Amount to be paid = $7316 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) = 3%
And, Time (t) = 8 years
Thus, Amount (A)
= $5900 + ($5900 × 3% × 8)
= $5900 + ($5900 ×3/100 × 8)
= $5900 + (5900 × 3 × 8/100)
= $5900 + (17700 × 8/100)
= $5900 + (141600/100)
= $5900 + $1416 = $7316
Thus, Amount (A) to be paid = $7316 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 3%
This, means, $3 per $100 per year
∵ For $100, the simple interest for 1 year = $3
∴ For $1, the simple interest for 1 year = 3/100
∴ For $5900, the simple interest in 1 year
= 3/100 × 5900
= 3 × 5900/100
= 17700/100 = $177
Thus, simple interest for 1 year = $177
Therefore, simple interest for 8 years
= Simple interest for 1 year × 8
= $177 × 8 = $1416
Thus, Simple Interest (SI) = $1416
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5900 + $1416
= $7316
Thus, Amount to be paid = $7316 Answer
Similar Questions
(1) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 4% simple interest for 7 years.
(2) Calculate the amount due if James borrowed a sum of $3000 at 3% simple interest for 3 years.
(3) Lisa took a loan of $6100 at the rate of 8% simple interest per annum. If he paid an amount of $9028 to clear the loan, then find the time period of the loan.
(4) Charles took a loan of $5800 at the rate of 6% simple interest per annum. If he paid an amount of $8932 to clear the loan, then find the time period of the loan.
(5) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 9% simple interest?
(6) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 8% simple interest for 7 years.
(7) Thomas took a loan of $5600 at the rate of 9% simple interest per annum. If he paid an amount of $9632 to clear the loan, then find the time period of the loan.
(8) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 10% simple interest?
(9) Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $8550 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 5% simple interest.