Question:
Calculate the amount due after 9 years if Jessica borrowed a sum of $5750 at a rate of 2% simple interest.
Correct Answer
$6785
Solution And Explanation
Solution
Given,
Principal (P) = $5750
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) = $5750 × 2% × 9
= $5750 ×2/100 × 9
= 5750 × 2 × 9/100
= 11500 × 9/100
= 103500/100
= $1035
Thus, Simple Interest = $1035
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 = $5750 + $1035
= $6785
Thus, Amount to be paid = $6785 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 = $5750
Rate of Simple Interest (SI) or (R) = 2%
And, Time (t) = 9 years
Thus, Amount (A)
= $5750 + ($5750 × 2% × 9)
= $5750 + ($5750 ×2/100 × 9)
= $5750 + (5750 × 2 × 9/100)
= $5750 + (11500 × 9/100)
= $5750 + (103500/100)
= $5750 + $1035 = $6785
Thus, Amount (A) to be paid = $6785 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 $5750, the simple interest in 1 year
= 2/100 × 5750
= 2 × 5750/100
= 11500/100 = $115
Thus, simple interest for 1 year = $115
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $115 × 9 = $1035
Thus, Simple Interest (SI) = $1035
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5750 + $1035
= $6785
Thus, Amount to be paid = $6785 Answer
Similar Questions
(1) What amount will be due after 2 years if Joseph borrowed a sum of $3350 at a 7% simple interest?
(2) If John borrowed $3200 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(3) Calculate the amount due if Thomas borrowed a sum of $3800 at 6% simple interest for 4 years.
(4) If Nancy paid $4482 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(5) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 3% simple interest?
(6) Find the amount to be paid if Patricia borrowed a sum of $5150 at 10% simple interest for 8 years.
(7) Michael had to pay $3795 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(8) What amount does William have to pay after 6 years if he takes a loan of $3500 at 8% simple interest?
(9) Calculate the amount due if Christopher borrowed a sum of $4000 at 10% simple interest for 4 years.
(10) How much loan did Susan borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6780 to clear it?