Question:
Calculate the amount due after 9 years if Joseph borrowed a sum of $5700 at a rate of 4% simple interest.
Correct Answer
$7752
Solution And Explanation
Solution
Given,
Principal (P) = $5700
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) = $5700 × 4% × 9
= $5700 ×4/100 × 9
= 5700 × 4 × 9/100
= 22800 × 9/100
= 205200/100
= $2052
Thus, Simple Interest = $2052
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 = $5700 + $2052
= $7752
Thus, Amount to be paid = $7752 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 = $5700
Rate of Simple Interest (SI) or (R) = 4%
And, Time (t) = 9 years
Thus, Amount (A)
= $5700 + ($5700 × 4% × 9)
= $5700 + ($5700 ×4/100 × 9)
= $5700 + (5700 × 4 × 9/100)
= $5700 + (22800 × 9/100)
= $5700 + (205200/100)
= $5700 + $2052 = $7752
Thus, Amount (A) to be paid = $7752 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 $5700, the simple interest in 1 year
= 4/100 × 5700
= 4 × 5700/100
= 22800/100 = $228
Thus, simple interest for 1 year = $228
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $228 × 9 = $2052
Thus, Simple Interest (SI) = $2052
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5700 + $2052
= $7752
Thus, Amount to be paid = $7752 Answer
Similar Questions
(1) Calculate the amount due if David borrowed a sum of $3400 at 4% simple interest for 4 years.
(2) William took a loan of $5000 at the rate of 9% simple interest per annum. If he paid an amount of $9050 to clear the loan, then find the time period of the loan.
(3) How much loan did Michael borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $6625 to clear it?
(4) Calculate the amount due if Michael borrowed a sum of $3300 at 10% simple interest for 3 years.
(5) What amount does Thomas have to pay after 6 years if he takes a loan of $3800 at 6% simple interest?
(6) Calculate the amount due if Joseph borrowed a sum of $3700 at 2% simple interest for 3 years.
(7) How much loan did Laura borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $9027.5 to clear it?
(8) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 7% simple interest?
(9) Christopher took a loan of $6000 at the rate of 7% simple interest per annum. If he paid an amount of $8940 to clear the loan, then find the time period of the loan.
(10) How much loan did Emily borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8437.5 to clear it?