Question:
( 1 of 10 ) Find the amount to be paid if Christopher borrowed a sum of $6000 at 7% simple interest for 8 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$6000
Correct Answer
$9360
Solution And Explanation
Solution
Given,
Principal (P) = $6000
Rate of Simple Interest (SI) = 7%
Time (t) = 8 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 7% simple interest means, Rate of Simple Interest (SI) is 7% 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 × 7% × 8
= $6000 ×7/100 × 8
= 6000 × 7 × 8/100
= 42000 × 8/100
= 336000/100
= $3360
Thus, Simple Interest = $3360
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 + $3360
= $9360
Thus, Amount to be paid = $9360 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) = 7%
And, Time (t) = 8 years
Thus, Amount (A)
= $6000 + ($6000 × 7% × 8)
= $6000 + ($6000 ×7/100 × 8)
= $6000 + (6000 × 7 × 8/100)
= $6000 + (42000 × 8/100)
= $6000 + (336000/100)
= $6000 + $3360 = $9360
Thus, Amount (A) to be paid = $9360 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 7%
This, means, $7 per $100 per year
∵ For $100, the simple interest for 1 year = $7
∴ For $1, the simple interest for 1 year = 7/100
∴ For $6000, the simple interest in 1 year
= 7/100 × 6000
= 7 × 6000/100
= 42000/100 = $420
Thus, simple interest for 1 year = $420
Therefore, simple interest for 8 years
= Simple interest for 1 year × 8
= $420 × 8 = $3360
Thus, Simple Interest (SI) = $3360
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $6000 + $3360
= $9360
Thus, Amount to be paid = $9360 Answer
Similar Questions
(1) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 7% simple interest.
(2) Find the amount to be paid if Linda borrowed a sum of $5350 at 5% simple interest for 7 years.
(3) Find the amount to be paid if Susan borrowed a sum of $5650 at 10% simple interest for 7 years.
(4) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 8% simple interest?
(5) Find the amount to be paid if Joseph borrowed a sum of $5700 at 5% simple interest for 7 years.
(6) Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $8940 to clear the loan, then find the time period of the loan.
(7) What amount does Elizabeth have to pay after 6 years if he takes a loan of $3450 at 6% simple interest?
(8) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 6% simple interest?
(9) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 2% simple interest.
(10) What amount does Michael have to pay after 5 years if he takes a loan of $3300 at 9% simple interest?