Question:
Calculate the amount due after 9 years if John borrowed a sum of $5200 at a rate of 2% simple interest.
Correct Answer
$6136
Solution And Explanation
Solution
Given,
Principal (P) = $5200
Rate of Simple Interest (SI) = 2%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 2% simple interest means, Rate of Simple Interest (SI) is 2% 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 × 2% × 9
= $5200 ×2/100 × 9
= 5200 × 2 × 9/100
= 10400 × 9/100
= 93600/100
= $936
Thus, Simple Interest = $936
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 + $936
= $6136
Thus, Amount to be paid = $6136 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) = 2%
And, Time (t) = 9 years
Thus, Amount (A)
= $5200 + ($5200 × 2% × 9)
= $5200 + ($5200 ×2/100 × 9)
= $5200 + (5200 × 2 × 9/100)
= $5200 + (10400 × 9/100)
= $5200 + (93600/100)
= $5200 + $936 = $6136
Thus, Amount (A) to be paid = $6136 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 2%
This, means, $2 per $100 per year
∵ For $100, the simple interest for 1 year = $2
∴ For $1, the simple interest for 1 year = 2/100
∴ For $5200, the simple interest in 1 year
= 2/100 × 5200
= 2 × 5200/100
= 10400/100 = $104
Thus, simple interest for 1 year = $104
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $104 × 9 = $936
Thus, Simple Interest (SI) = $936
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5200 + $936
= $6136
Thus, Amount to be paid = $6136 Answer
Similar Questions
(1) What amount will be due after 2 years if David borrowed a sum of $3200 at a 7% simple interest?
(2) What amount will be due after 2 years if David borrowed a sum of $3200 at a 10% simple interest?
(3) Jessica took a loan of $5500 at the rate of 7% simple interest per annum. If he paid an amount of $8965 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Jessica borrowed a sum of $5750 at 7% simple interest for 7 years.
(5) Calculate the amount due after 10 years if William borrowed a sum of $5500 at a rate of 9% simple interest.
(6) Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 9% simple interest.
(7) How much loan did Joshua borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $7935 to clear it?
(8) Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 9% simple interest.
(9) Karen took a loan of $5900 at the rate of 6% simple interest per annum. If he paid an amount of $8024 to clear the loan, then find the time period of the loan.
(10) Sandra took a loan of $6900 at the rate of 8% simple interest per annum. If he paid an amount of $11868 to clear the loan, then find the time period of the loan.