Question:
Calculate the amount due after 9 years if Sarah borrowed a sum of $5850 at a rate of 2% simple interest.
Correct Answer
$6903
Solution And Explanation
Solution
Given,
Principal (P) = $5850
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) = $5850 × 2% × 9
= $5850 ×2/100 × 9
= 5850 × 2 × 9/100
= 11700 × 9/100
= 105300/100
= $1053
Thus, Simple Interest = $1053
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 = $5850 + $1053
= $6903
Thus, Amount to be paid = $6903 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 = $5850
Rate of Simple Interest (SI) or (R) = 2%
And, Time (t) = 9 years
Thus, Amount (A)
= $5850 + ($5850 × 2% × 9)
= $5850 + ($5850 ×2/100 × 9)
= $5850 + (5850 × 2 × 9/100)
= $5850 + (11700 × 9/100)
= $5850 + (105300/100)
= $5850 + $1053 = $6903
Thus, Amount (A) to be paid = $6903 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 $5850, the simple interest in 1 year
= 2/100 × 5850
= 2 × 5850/100
= 11700/100 = $117
Thus, simple interest for 1 year = $117
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $117 × 9 = $1053
Thus, Simple Interest (SI) = $1053
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5850 + $1053
= $6903
Thus, Amount to be paid = $6903 Answer
Similar Questions
(1) If Jessica paid $4050 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(2) If Andrew paid $5568 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(3) Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 4% simple interest.
(4) Calculate the amount due if William borrowed a sum of $3500 at 2% simple interest for 4 years.
(5) Calculate the amount due if Richard borrowed a sum of $3600 at 5% simple interest for 4 years.
(6) Donald took a loan of $7000 at the rate of 6% simple interest per annum. If he paid an amount of $10360 to clear the loan, then find the time period of the loan.
(7) If Michael paid $3828 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(8) Calculate the amount due after 9 years if Richard borrowed a sum of $5600 at a rate of 3% simple interest.
(9) Find the amount to be paid if Michael borrowed a sum of $5300 at 3% simple interest for 7 years.
(10) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $6216 to clear the loan, then find the time period of the loan.