Simple Interest
MCQs Math


Question:     Calculate the amount due after 9 years if Elizabeth borrowed a sum of $5450 at a rate of 2% simple interest.


Correct Answer  $6431

Solution And Explanation

Solution

Given,

Principal (P) = $5450

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) = $5450 × 2% × 9

= $5450 ×2/100 × 9

= 5450 × 2 × 9/100

= 10900 × 9/100

= 98100/100

= $981

Thus, Simple Interest = $981

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 = $5450 + $981

= $6431

Thus, Amount to be paid = $6431 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 = $5450

Rate of Simple Interest (SI) or (R) = 2%

And, Time (t) = 9 years

Thus, Amount (A)

= $5450 + ($5450 × 2% × 9)

= $5450 + ($5450 ×2/100 × 9)

= $5450 + (5450 × 2 × 9/100)

= $5450 + (10900 × 9/100)

= $5450 + (98100/100)

= $5450 + $981 = $6431

Thus, Amount (A) to be paid = $6431 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 $5450, the simple interest in 1 year

= 2/100 × 5450

= 2 × 5450/100

= 10900/100 = $109

Thus, simple interest for 1 year = $109

Therefore, simple interest for 9 years

= Simple interest for 1 year × 9

= $109 × 9 = $981

Thus, Simple Interest (SI) = $981

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5450 + $981

= $6431

Thus, Amount to be paid = $6431 Answer


Similar Questions

(1) Find the amount to be paid if Karen borrowed a sum of $5950 at 3% simple interest for 7 years.

(2) Elizabeth had to pay $3760.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(3) What amount does David have to pay after 5 years if he takes a loan of $3400 at 6% simple interest?

(4) Find the amount to be paid if Michael borrowed a sum of $5300 at 9% simple interest for 7 years.

(5) Calculate the amount due if Joseph borrowed a sum of $3700 at 2% simple interest for 4 years.

(6) If Emily paid $5700 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(7) Sandra took a loan of $6900 at the rate of 8% simple interest per annum. If he paid an amount of $10212 to clear the loan, then find the time period of the loan.

(8) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 10% simple interest?

(9) Find the amount to be paid if Jessica borrowed a sum of $5750 at 8% simple interest for 8 years.

(10) Sandra took a loan of $6900 at the rate of 9% simple interest per annum. If he paid an amount of $13110 to clear the loan, then find the time period of the loan.


NCERT Solution and CBSE Notes for class twelve, eleventh, tenth, ninth, seventh, sixth, fifth, fourth and General Math for competitive Exams. ©