Question:
Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 2% simple interest.
Correct Answer
$6313
Solution And Explanation
Solution
Given,
Principal (P) = $5350
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) = $5350 × 2% × 9
= $5350 ×2/100 × 9
= 5350 × 2 × 9/100
= 10700 × 9/100
= 96300/100
= $963
Thus, Simple Interest = $963
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 = $5350 + $963
= $6313
Thus, Amount to be paid = $6313 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 = $5350
Rate of Simple Interest (SI) or (R) = 2%
And, Time (t) = 9 years
Thus, Amount (A)
= $5350 + ($5350 × 2% × 9)
= $5350 + ($5350 ×2/100 × 9)
= $5350 + (5350 × 2 × 9/100)
= $5350 + (10700 × 9/100)
= $5350 + (96300/100)
= $5350 + $963 = $6313
Thus, Amount (A) to be paid = $6313 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 $5350, the simple interest in 1 year
= 2/100 × 5350
= 2 × 5350/100
= 10700/100 = $107
Thus, simple interest for 1 year = $107
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $107 × 9 = $963
Thus, Simple Interest (SI) = $963
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $963
= $6313
Thus, Amount to be paid = $6313 Answer
Similar Questions
(1) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 4% simple interest?
(2) Find the amount to be paid if William borrowed a sum of $5500 at 8% simple interest for 8 years.
(3) Find the amount to be paid if Patricia borrowed a sum of $5150 at 8% simple interest for 8 years.
(4) If Mary borrowed $3050 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(5) What amount does Karen have to pay after 6 years if he takes a loan of $3950 at 3% simple interest?
(6) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 6% simple interest.
(7) If Mary borrowed $3050 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(8) Barbara took a loan of $5100 at the rate of 6% simple interest per annum. If he paid an amount of $8160 to clear the loan, then find the time period of the loan.
(9) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $12489 to clear the loan, then find the time period of the loan.
(10) What amount will be due after 2 years if Thomas borrowed a sum of $3400 at a 10% simple interest?