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) 4 47/50 Or, 247/50
(B) 8 47/50 Or, 447/50
(C) 4 141/50 Or, 341/50
(D) 4 94/50 Or, 294/50
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) What amount does Joseph have to pay after 6 years if he takes a loan of $3700 at 3% simple interest?
(2) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 4% simple interest.
(3) Calculate the amount due after 10 years if Thomas borrowed a sum of $5800 at a rate of 6% simple interest.
(4) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 7% simple interest?
(5) Daniel took a loan of $6200 at the rate of 10% simple interest per annum. If he paid an amount of $9920 to clear the loan, then find the time period of the loan.
(6) If Patricia paid $3780 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.
(7) If Emily paid $5320 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(8) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 7% simple interest?
(9) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $6037.5 to clear it?
(10) Find the amount to be paid if Linda borrowed a sum of $5350 at 2% simple interest for 8 years.