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) How much loan did William borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $6050 to clear it?
(2) How much loan did Joshua borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8625 to clear it?
(3) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 3% simple interest for 8 years.
(4) Calculate the amount due if Jessica borrowed a sum of $3750 at 10% simple interest for 4 years.
(5) If Karen borrowed $3950 from a bank at a rate of 2% simple interest per annum then find the amount to be paid after 2 years.
(6) Calculate the amount due if Richard borrowed a sum of $3600 at 6% simple interest for 4 years.
(7) What amount does Michael have to pay after 5 years if he takes a loan of $3300 at 4% simple interest?
(8) Mark took a loan of $6800 at the rate of 10% simple interest per annum. If he paid an amount of $12920 to clear the loan, then find the time period of the loan.
(9) What amount will be due after 2 years if Joshua borrowed a sum of $3950 at a 8% simple interest?
(10) Find the amount to be paid if Elizabeth borrowed a sum of $5450 at 4% simple interest for 7 years.