Question:
( 1 of 10 ) Find the amount to be paid if John borrowed a sum of $5200 at 9% simple interest for 8 years.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$5200
Correct Answer
$8944
Solution And Explanation
Solution
Given,
Principal (P) = $5200
Rate of Simple Interest (SI) = 9%
Time (t) = 8 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 9% simple interest means, Rate of Simple Interest (SI) is 9% 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) = $5200 × 9% × 8
= $5200 ×9/100 × 8
= 5200 × 9 × 8/100
= 46800 × 8/100
= 374400/100
= $3744
Thus, Simple Interest = $3744
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 = $5200 + $3744
= $8944
Thus, Amount to be paid = $8944 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 = $5200
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 8 years
Thus, Amount (A)
= $5200 + ($5200 × 9% × 8)
= $5200 + ($5200 ×9/100 × 8)
= $5200 + (5200 × 9 × 8/100)
= $5200 + (46800 × 8/100)
= $5200 + (374400/100)
= $5200 + $3744 = $8944
Thus, Amount (A) to be paid = $8944 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 9%
This, means, $9 per $100 per year
∵ For $100, the simple interest for 1 year = $9
∴ For $1, the simple interest for 1 year = 9/100
∴ For $5200, the simple interest in 1 year
= 9/100 × 5200
= 9 × 5200/100
= 46800/100 = $468
Thus, simple interest for 1 year = $468
Therefore, simple interest for 8 years
= Simple interest for 1 year × 8
= $468 × 8 = $3744
Thus, Simple Interest (SI) = $3744
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5200 + $3744
= $8944
Thus, Amount to be paid = $8944 Answer
Similar Questions
(1) William took a loan of $5000 at the rate of 7% simple interest per annum. If he paid an amount of $7450 to clear the loan, then find the time period of the loan.
(2) Kenneth had to pay $5600 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(3) Donald took a loan of $7000 at the rate of 8% simple interest per annum. If he paid an amount of $12600 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if John borrowed a sum of $5200 at 10% simple interest for 7 years.
(5) What amount does Christopher have to pay after 6 years if he takes a loan of $4000 at 9% simple interest?
(6) Mary took a loan of $4100 at the rate of 10% simple interest per annum. If he paid an amount of $7790 to clear the loan, then find the time period of the loan.
(7) In how much time a principal of $3050 will amount to $3294 at a simple interest of 2% per annum?
(8) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 7% simple interest for 8 years.
(9) Charles took a loan of $5800 at the rate of 7% simple interest per annum. If he paid an amount of $9048 to clear the loan, then find the time period of the loan.
(10) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 8% simple interest?