Question:
Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 2% simple interest.
Correct Answer
$6726
Solution And Explanation
Solution
Given,
Principal (P) = $5700
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) = $5700 × 2% × 9
= $5700 ×2/100 × 9
= 5700 × 2 × 9/100
= 11400 × 9/100
= 102600/100
= $1026
Thus, Simple Interest = $1026
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 = $5700 + $1026
= $6726
Thus, Amount to be paid = $6726 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 = $5700
Rate of Simple Interest (SI) or (R) = 2%
And, Time (t) = 9 years
Thus, Amount (A)
= $5700 + ($5700 × 2% × 9)
= $5700 + ($5700 ×2/100 × 9)
= $5700 + (5700 × 2 × 9/100)
= $5700 + (11400 × 9/100)
= $5700 + (102600/100)
= $5700 + $1026 = $6726
Thus, Amount (A) to be paid = $6726 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 $5700, the simple interest in 1 year
= 2/100 × 5700
= 2 × 5700/100
= 11400/100 = $114
Thus, simple interest for 1 year = $114
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $114 × 9 = $1026
Thus, Simple Interest (SI) = $1026
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5700 + $1026
= $6726
Thus, Amount to be paid = $6726 Answer
Similar Questions
(1) Find the amount to be paid if Jennifer borrowed a sum of $5250 at 3% simple interest for 7 years.
(2) How much loan did Ryan borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $8690 to clear it?
(3) Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 3% simple interest.
(4) Robert took a loan of $4200 at the rate of 8% simple interest per annum. If he paid an amount of $6552 to clear the loan, then find the time period of the loan.
(5) Find the amount to be paid if David borrowed a sum of $5400 at 8% simple interest for 7 years.
(6) Nancy had to pay $4648 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.
(7) If Joseph borrowed $3700 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(8) Patricia took a loan of $4300 at the rate of 6% simple interest per annum. If he paid an amount of $6106 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due if Christopher borrowed a sum of $4000 at 9% simple interest for 3 years.
(10) How much loan did Carol borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $8107.5 to clear it?