Question:
( 3 of 10 ) Find the amount to be paid if Karen borrowed a sum of $5950 at 3% simple interest for 8 years.
(A) 11 19/46 days or 11.413 days
(B) 22 19/46 days or 22.413 days
(C) 46 days
(D) 23 days
You selected
$5950
Correct Answer
$7378
Solution And Explanation
Solution
Given,
Principal (P) = $5950
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) = $5950 × 3% × 8
= $5950 ×3/100 × 8
= 5950 × 3 × 8/100
= 17850 × 8/100
= 142800/100
= $1428
Thus, Simple Interest = $1428
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 = $5950 + $1428
= $7378
Thus, Amount to be paid = $7378 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 = $5950
Rate of Simple Interest (SI) or (R) = 3%
And, Time (t) = 8 years
Thus, Amount (A)
= $5950 + ($5950 × 3% × 8)
= $5950 + ($5950 ×3/100 × 8)
= $5950 + (5950 × 3 × 8/100)
= $5950 + (17850 × 8/100)
= $5950 + (142800/100)
= $5950 + $1428 = $7378
Thus, Amount (A) to be paid = $7378 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 $5950, the simple interest in 1 year
= 3/100 × 5950
= 3 × 5950/100
= 17850/100 = $178.5
Thus, simple interest for 1 year = $178.5
Therefore, simple interest for 8 years
= Simple interest for 1 year × 8
= $178.5 × 8 = $1428
Thus, Simple Interest (SI) = $1428
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5950 + $1428
= $7378
Thus, Amount to be paid = $7378 Answer
Similar Questions
(1) If Jessica borrowed $3750 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(2) What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 4% simple interest?
(3) Elizabeth took a loan of $4900 at the rate of 9% simple interest per annum. If he paid an amount of $8428 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Patricia borrowed a sum of $5150 at 3% simple interest for 8 years.
(5) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 4% simple interest?
(6) Find the amount to be paid if Richard borrowed a sum of $5600 at 3% simple interest for 7 years.
(7) What amount does Karen have to pay after 6 years if he takes a loan of $3950 at 6% simple interest?
(8) Karen took a loan of $5900 at the rate of 8% simple interest per annum. If he paid an amount of $10148 to clear the loan, then find the time period of the loan.
(9) What amount does Patricia have to pay after 5 years if he takes a loan of $3150 at 6% simple interest?
(10) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 7% simple interest?