Question:
( 1 of 10 ) Find the amount to be paid if Susan borrowed a sum of $5650 at 9% simple interest for 8 years.
(A) 711
(B) 712
(C) 1415
(D) 710
You selected
$5650
Correct Answer
$9718
Solution And Explanation
Solution
Given,
Principal (P) = $5650
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) = $5650 × 9% × 8
= $5650 ×9/100 × 8
= 5650 × 9 × 8/100
= 50850 × 8/100
= 406800/100
= $4068
Thus, Simple Interest = $4068
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 = $5650 + $4068
= $9718
Thus, Amount to be paid = $9718 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 = $5650
Rate of Simple Interest (SI) or (R) = 9%
And, Time (t) = 8 years
Thus, Amount (A)
= $5650 + ($5650 × 9% × 8)
= $5650 + ($5650 ×9/100 × 8)
= $5650 + (5650 × 9 × 8/100)
= $5650 + (50850 × 8/100)
= $5650 + (406800/100)
= $5650 + $4068 = $9718
Thus, Amount (A) to be paid = $9718 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 $5650, the simple interest in 1 year
= 9/100 × 5650
= 9 × 5650/100
= 50850/100 = $508.5
Thus, simple interest for 1 year = $508.5
Therefore, simple interest for 8 years
= Simple interest for 1 year × 8
= $508.5 × 8 = $4068
Thus, Simple Interest (SI) = $4068
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5650 + $4068
= $9718
Thus, Amount to be paid = $9718 Answer
Similar Questions
(1) Find the amount to be paid if Karen borrowed a sum of $5950 at 4% simple interest for 8 years.
(2) Find the amount to be paid if Patricia borrowed a sum of $5150 at 8% simple interest for 7 years.
(3) Find the amount to be paid if Susan borrowed a sum of $5650 at 8% simple interest for 7 years.
(4) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $5712 to clear the loan, then find the time period of the loan.
(5) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 4% simple interest?
(6) Calculate the amount due after 9 years if William borrowed a sum of $5500 at a rate of 2% simple interest.
(7) 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.
(8) What amount does Charles have to pay after 5 years if he takes a loan of $3900 at 3% simple interest?
(9) What amount does Elizabeth have to pay after 6 years if he takes a loan of $3450 at 3% simple interest?
(10) David took a loan of $4800 at the rate of 8% simple interest per annum. If he paid an amount of $8256 to clear the loan, then find the time period of the loan.