Question:
Find the amount to be paid if Christopher borrowed a sum of $6000 at 6% simple interest for 8 years.
Correct Answer
$8880
Solution And Explanation
Solution
Given,
Principal (P) = $6000
Rate of Simple Interest (SI) = 6%
Time (t) = 8 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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) = $6000 × 6% × 8
= $6000 ×6/100 × 8
= 6000 × 6 × 8/100
= 36000 × 8/100
= 288000/100
= $2880
Thus, Simple Interest = $2880
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 = $6000 + $2880
= $8880
Thus, Amount to be paid = $8880 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 = $6000
Rate of Simple Interest (SI) or (R) = 6%
And, Time (t) = 8 years
Thus, Amount (A)
= $6000 + ($6000 × 6% × 8)
= $6000 + ($6000 ×6/100 × 8)
= $6000 + (6000 × 6 × 8/100)
= $6000 + (36000 × 8/100)
= $6000 + (288000/100)
= $6000 + $2880 = $8880
Thus, Amount (A) to be paid = $8880 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 6%
This, means, $6 per $100 per year
∵ For $100, the simple interest for 1 year = $6
∴ For $1, the simple interest for 1 year = 6/100
∴ For $6000, the simple interest in 1 year
= 6/100 × 6000
= 6 × 6000/100
= 36000/100 = $360
Thus, simple interest for 1 year = $360
Therefore, simple interest for 8 years
= Simple interest for 1 year × 8
= $360 × 8 = $2880
Thus, Simple Interest (SI) = $2880
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $6000 + $2880
= $8880
Thus, Amount to be paid = $8880 Answer
Similar Questions
(1) What amount does Michael have to pay after 6 years if he takes a loan of $3300 at 7% simple interest?
(2) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 6% simple interest?
(3) Calculate the amount due if Joseph borrowed a sum of $3700 at 3% simple interest for 3 years.
(4) Jennifer took a loan of $4500 at the rate of 10% simple interest per annum. If he paid an amount of $8100 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if Joseph borrowed a sum of $3700 at 4% simple interest for 4 years.
(6) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $11247 to clear the loan, then find the time period of the loan.
(7) Calculate the amount due if Robert borrowed a sum of $3100 at 7% simple interest for 4 years.
(8) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 6% simple interest?
(9) Calculate the amount due if Thomas borrowed a sum of $3800 at 9% simple interest for 4 years.
(10) Calculate the amount due if Robert borrowed a sum of $3100 at 9% simple interest for 4 years.