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) Calculate the amount due if Thomas borrowed a sum of $3800 at 6% simple interest for 3 years.
(2) What amount does James have to pay after 5 years if he takes a loan of $3000 at 9% simple interest?
(3) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $7844 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Mary borrowed a sum of $3050 at 7% simple interest for 3 years.
(5) Richard took a loan of $5200 at the rate of 7% simple interest per annum. If he paid an amount of $7384 to clear the loan, then find the time period of the loan.
(6) In how much time a principal of $3050 will amount to $3812.5 at a simple interest of 5% per annum?
(7) Daniel took a loan of $6200 at the rate of 6% simple interest per annum. If he paid an amount of $8804 to clear the loan, then find the time period of the loan.
(8) Mark took a loan of $6800 at the rate of 6% simple interest per annum. If he paid an amount of $9248 to clear the loan, then find the time period of the loan.
(9) Ashley had to pay $4823 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(10) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 8% simple interest?