Question:
Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 2% simple interest.
Correct Answer
$6962
Solution And Explanation
Solution
Given,
Principal (P) = $5900
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) = $5900 × 2% × 9
= $5900 ×2/100 × 9
= 5900 × 2 × 9/100
= 11800 × 9/100
= 106200/100
= $1062
Thus, Simple Interest = $1062
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 = $5900 + $1062
= $6962
Thus, Amount to be paid = $6962 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 = $5900
Rate of Simple Interest (SI) or (R) = 2%
And, Time (t) = 9 years
Thus, Amount (A)
= $5900 + ($5900 × 2% × 9)
= $5900 + ($5900 ×2/100 × 9)
= $5900 + (5900 × 2 × 9/100)
= $5900 + (11800 × 9/100)
= $5900 + (106200/100)
= $5900 + $1062 = $6962
Thus, Amount (A) to be paid = $6962 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 $5900, the simple interest in 1 year
= 2/100 × 5900
= 2 × 5900/100
= 11800/100 = $118
Thus, simple interest for 1 year = $118
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $118 × 9 = $1062
Thus, Simple Interest (SI) = $1062
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5900 + $1062
= $6962
Thus, Amount to be paid = $6962 Answer
Similar Questions
(1) Find the amount to be paid if James borrowed a sum of $5000 at 2% simple interest for 7 years.
(2) Find the amount to be paid if Patricia borrowed a sum of $5150 at 9% simple interest for 8 years.
(3) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 5% simple interest.
(4) What amount does Jennifer have to pay after 5 years if he takes a loan of $3250 at 4% simple interest?
(5) How much loan did Amanda borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $8580 to clear it?
(6) Calculate the amount due after 9 years if James borrowed a sum of $5000 at a rate of 2% simple interest.
(7) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 3% simple interest?
(8) William took a loan of $5000 at the rate of 9% simple interest per annum. If he paid an amount of $8150 to clear the loan, then find the time period of the loan.
(9) Calculate the amount due after 10 years if Patricia borrowed a sum of $5150 at a rate of 4% simple interest.
(10) Michael took a loan of $4600 at the rate of 9% simple interest per annum. If he paid an amount of $7912 to clear the loan, then find the time period of the loan.