Question:
Calculate the amount due after 9 years if Charles borrowed a sum of $5900 at a rate of 4% simple interest.
Correct Answer
$8024
Solution And Explanation
Solution
Given,
Principal (P) = $5900
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) = $5900 × 4% × 9
= $5900 ×4/100 × 9
= 5900 × 4 × 9/100
= 23600 × 9/100
= 212400/100
= $2124
Thus, Simple Interest = $2124
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 + $2124
= $8024
Thus, Amount to be paid = $8024 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) = 4%
And, Time (t) = 9 years
Thus, Amount (A)
= $5900 + ($5900 × 4% × 9)
= $5900 + ($5900 ×4/100 × 9)
= $5900 + (5900 × 4 × 9/100)
= $5900 + (23600 × 9/100)
= $5900 + (212400/100)
= $5900 + $2124 = $8024
Thus, Amount (A) to be paid = $8024 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 $5900, the simple interest in 1 year
= 4/100 × 5900
= 4 × 5900/100
= 23600/100 = $236
Thus, simple interest for 1 year = $236
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $236 × 9 = $2124
Thus, Simple Interest (SI) = $2124
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5900 + $2124
= $8024
Thus, Amount to be paid = $8024 Answer
Similar Questions
(1) Find the amount to be paid if Susan borrowed a sum of $5650 at 6% simple interest for 8 years.
(2) Calculate the amount due if Charles borrowed a sum of $3900 at 2% simple interest for 4 years.
(3) Patricia had to pay $3433.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(4) Mark took a loan of $6800 at the rate of 9% simple interest per annum. If he paid an amount of $11084 to clear the loan, then find the time period of the loan.
(5) Jennifer took a loan of $4500 at the rate of 9% simple interest per annum. If he paid an amount of $8145 to clear the loan, then find the time period of the loan.
(6) Calculate the amount due after 10 years if Richard borrowed a sum of $5600 at a rate of 10% simple interest.
(7) What amount does Robert have to pay after 5 years if he takes a loan of $3100 at 7% simple interest?
(8) If Donald paid $5220 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.
(9) Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 3% simple interest.
(10) If Richard paid $3888 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.