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) Calculate the amount due after 9 years if Jennifer borrowed a sum of $5250 at a rate of 6% simple interest.
(2) Calculate the amount due if John borrowed a sum of $3200 at 10% simple interest for 3 years.
(3) How much loan did Kevin borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $8875 to clear it?
(4) How much loan did Susan borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7062.5 to clear it?
(5) What amount does Charles have to pay after 6 years if he takes a loan of $3900 at 3% simple interest?
(6) In how much time a principal of $3150 will amount to $3528 at a simple interest of 4% per annum?
(7) What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 10% simple interest?
(8) Calculate the amount due if Joseph borrowed a sum of $3700 at 2% simple interest for 3 years.
(9) If Jennifer paid $3640 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(10) What amount will be due after 2 years if Richard borrowed a sum of $3300 at a 5% simple interest?