Question:
( 1 of 10 ) Find the amount to be paid if Michael borrowed a sum of $5300 at 10% 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
$5300
Correct Answer
$9540
Solution And Explanation
Solution
Given,
Principal (P) = $5300
Rate of Simple Interest (SI) = 10%
Time (t) = 8 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 10% simple interest means, Rate of Simple Interest (SI) is 10% 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) = $5300 × 10% × 8
= $5300 ×10/100 × 8
= 5300 × 10 × 8/100
= 53000 × 8/100
= 424000/100
= $4240
Thus, Simple Interest = $4240
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 = $5300 + $4240
= $9540
Thus, Amount to be paid = $9540 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 = $5300
Rate of Simple Interest (SI) or (R) = 10%
And, Time (t) = 8 years
Thus, Amount (A)
= $5300 + ($5300 × 10% × 8)
= $5300 + ($5300 ×10/100 × 8)
= $5300 + (5300 × 10 × 8/100)
= $5300 + (53000 × 8/100)
= $5300 + (424000/100)
= $5300 + $4240 = $9540
Thus, Amount (A) to be paid = $9540 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 10%
This, means, $10 per $100 per year
∵ For $100, the simple interest for 1 year = $10
∴ For $1, the simple interest for 1 year = 10/100
∴ For $5300, the simple interest in 1 year
= 10/100 × 5300
= 10 × 5300/100
= 53000/100 = $530
Thus, simple interest for 1 year = $530
Therefore, simple interest for 8 years
= Simple interest for 1 year × 8
= $530 × 8 = $4240
Thus, Simple Interest (SI) = $4240
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5300 + $4240
= $9540
Thus, Amount to be paid = $9540 Answer
Similar Questions
(1) If Thomas paid $4104 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(2) Calculate the amount due if Thomas borrowed a sum of $3800 at 5% simple interest for 4 years.
(3) Lisa took a loan of $6100 at the rate of 9% simple interest per annum. If he paid an amount of $11041 to clear the loan, then find the time period of the loan.
(4) Michael took a loan of $4600 at the rate of 6% simple interest per annum. If he paid an amount of $6256 to clear the loan, then find the time period of the loan.
(5) Calculate the amount due if Thomas borrowed a sum of $3800 at 7% simple interest for 3 years.
(6) Find the amount to be paid if David borrowed a sum of $5400 at 10% simple interest for 8 years.
(7) Daniel took a loan of $6200 at the rate of 7% simple interest per annum. If he paid an amount of $10106 to clear the loan, then find the time period of the loan.
(8) Richard took a loan of $5200 at the rate of 10% simple interest per annum. If he paid an amount of $9360 to clear the loan, then find the time period of the loan.
(9) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $7040 to clear the loan, then find the time period of the loan.
(10) Barbara took a loan of $5100 at the rate of 6% simple interest per annum. If he paid an amount of $6936 to clear the loan, then find the time period of the loan.