Question:
Calculate the amount due after 9 years if Linda borrowed a sum of $5350 at a rate of 4% simple interest.
Correct Answer
$7276
Solution And Explanation
Solution
Given,
Principal (P) = $5350
Rate of Simple Interest (SI) = 4%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 4% simple interest means, Rate of Simple Interest (SI) is 4% 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) = $5350 × 4% × 9
= $5350 ×4/100 × 9
= 5350 × 4 × 9/100
= 21400 × 9/100
= 192600/100
= $1926
Thus, Simple Interest = $1926
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 = $5350 + $1926
= $7276
Thus, Amount to be paid = $7276 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 = $5350
Rate of Simple Interest (SI) or (R) = 4%
And, Time (t) = 9 years
Thus, Amount (A)
= $5350 + ($5350 × 4% × 9)
= $5350 + ($5350 ×4/100 × 9)
= $5350 + (5350 × 4 × 9/100)
= $5350 + (21400 × 9/100)
= $5350 + (192600/100)
= $5350 + $1926 = $7276
Thus, Amount (A) to be paid = $7276 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 4%
This, means, $4 per $100 per year
∵ For $100, the simple interest for 1 year = $4
∴ For $1, the simple interest for 1 year = 4/100
∴ For $5350, the simple interest in 1 year
= 4/100 × 5350
= 4 × 5350/100
= 21400/100 = $214
Thus, simple interest for 1 year = $214
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $214 × 9 = $1926
Thus, Simple Interest (SI) = $1926
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5350 + $1926
= $7276
Thus, Amount to be paid = $7276 Answer
Similar Questions
(1) Find the amount to be paid if James borrowed a sum of $5000 at 5% simple interest for 7 years.
(2) Daniel took a loan of $6200 at the rate of 8% simple interest per annum. If he paid an amount of $10168 to clear the loan, then find the time period of the loan.
(3) John took a loan of $4400 at the rate of 6% simple interest per annum. If he paid an amount of $6248 to clear the loan, then find the time period of the loan.
(4) Find the amount to be paid if Charles borrowed a sum of $5900 at 6% simple interest for 7 years.
(5) Calculate the amount due after 10 years if John borrowed a sum of $5200 at a rate of 6% simple interest.
(6) Calculate the amount due after 10 years if Linda borrowed a sum of $5350 at a rate of 6% simple interest.
(7) Mary had to pay $3507.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 5% then find the sum borrowed.
(8) Calculate the amount due after 9 years if Patricia borrowed a sum of $5150 at a rate of 8% simple interest.
(9) Donald took a loan of $7000 at the rate of 8% simple interest per annum. If he paid an amount of $10360 to clear the loan, then find the time period of the loan.
(10) Jessica took a loan of $5500 at the rate of 10% simple interest per annum. If he paid an amount of $9900 to clear the loan, then find the time period of the loan.