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) Lisa took a loan of $6100 at the rate of 6% simple interest per annum. If he paid an amount of $8662 to clear the loan, then find the time period of the loan.
(2) Margaret took a loan of $6700 at the rate of 7% simple interest per annum. If he paid an amount of $11390 to clear the loan, then find the time period of the loan.
(3) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $7216 to clear the loan, then find the time period of the loan.
(4) How much loan did Jessica borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6325 to clear it?
(5) How much loan did Joseph borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7125 to clear it?
(6) Calculate the amount due after 10 years if Joseph borrowed a sum of $5700 at a rate of 5% simple interest.
(7) What amount does Richard have to pay after 6 years if he takes a loan of $3600 at 4% simple interest?
(8) Find the amount to be paid if Mary borrowed a sum of $5050 at 7% simple interest for 7 years.
(9) Nancy took a loan of $6300 at the rate of 10% simple interest per annum. If he paid an amount of $12600 to clear the loan, then find the time period of the loan.
(10) Calculate the amount due if Michael borrowed a sum of $3300 at 7% simple interest for 3 years.