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) Find the amount to be paid if Richard borrowed a sum of $5600 at 3% simple interest for 7 years.
(2) If William borrowed $3500 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(3) Calculate the amount due if Karen borrowed a sum of $3950 at 6% simple interest for 3 years.
(4) Calculate the amount due after 10 years if James borrowed a sum of $5000 at a rate of 9% simple interest.
(5) Michael took a loan of $4600 at the rate of 7% simple interest per annum. If he paid an amount of $7498 to clear the loan, then find the time period of the loan.
(6) Linda took a loan of $4700 at the rate of 10% simple interest per annum. If he paid an amount of $8930 to clear the loan, then find the time period of the loan.
(7) Barbara took a loan of $5100 at the rate of 8% simple interest per annum. If he paid an amount of $7548 to clear the loan, then find the time period of the loan.
(8) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 2% simple interest.
(9) Calculate the amount due if Christopher borrowed a sum of $4000 at 7% simple interest for 3 years.
(10) Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 2% simple interest.