Simple Interest
MCQs Math


Question:     Find the amount to be paid if Joseph borrowed a sum of $5700 at 8% simple interest for 8 years.


Correct Answer  $9348

Solution And Explanation

Solution

Given,

Principal (P) = $5700

Rate of Simple Interest (SI) = 8%

Time (t) = 8 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 8% simple interest means, Rate of Simple Interest (SI) is 8% 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) = $5700 × 8% × 8

= $5700 ×8/100 × 8

= 5700 × 8 × 8/100

= 45600 × 8/100

= 364800/100

= $3648

Thus, Simple Interest = $3648

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 = $5700 + $3648

= $9348

Thus, Amount to be paid = $9348 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 = $5700

Rate of Simple Interest (SI) or (R) = 8%

And, Time (t) = 8 years

Thus, Amount (A)

= $5700 + ($5700 × 8% × 8)

= $5700 + ($5700 ×8/100 × 8)

= $5700 + (5700 × 8 × 8/100)

= $5700 + (45600 × 8/100)

= $5700 + (364800/100)

= $5700 + $3648 = $9348

Thus, Amount (A) to be paid = $9348 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 8%

This, means, $8 per $100 per year

∵ For $100, the simple interest for 1 year = $8

∴ For $1, the simple interest for 1 year = 8/100

∴ For $5700, the simple interest in 1 year

= 8/100 × 5700

= 8 × 5700/100

= 45600/100 = $456

Thus, simple interest for 1 year = $456

Therefore, simple interest for 8 years

= Simple interest for 1 year × 8

= $456 × 8 = $3648

Thus, Simple Interest (SI) = $3648

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5700 + $3648

= $9348

Thus, Amount to be paid = $9348 Answer


Similar Questions

(1) What amount does Mary have to pay after 6 years if he takes a loan of $3050 at 10% simple interest?

(2) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 10% simple interest?

(3) Find the amount to be paid if James borrowed a sum of $5000 at 5% simple interest for 7 years.

(4) What amount does Richard have to pay after 5 years if he takes a loan of $3600 at 5% simple interest?

(5) Robert took a loan of $4200 at the rate of 9% simple interest per annum. If he paid an amount of $6468 to clear the loan, then find the time period of the loan.

(6) What amount does David have to pay after 5 years if he takes a loan of $3400 at 2% simple interest?

(7) Betty took a loan of $6500 at the rate of 6% simple interest per annum. If he paid an amount of $8840 to clear the loan, then find the time period of the loan.

(8) What amount will be due after 2 years if Anthony borrowed a sum of $3650 at a 10% simple interest?

(9) What amount does Mary have to pay after 5 years if he takes a loan of $3050 at 10% simple interest?

(10) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 5% simple interest.


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