Simple Interest
MCQs Math


Question:     Calculate the amount due after 9 years if Karen borrowed a sum of $5950 at a rate of 4% simple interest.


Correct Answer  $8092

Solution And Explanation

Solution

Given,

Principal (P) = $5950

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) = $5950 × 4% × 9

= $5950 ×4/100 × 9

= 5950 × 4 × 9/100

= 23800 × 9/100

= 214200/100

= $2142

Thus, Simple Interest = $2142

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 = $5950 + $2142

= $8092

Thus, Amount to be paid = $8092 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 = $5950

Rate of Simple Interest (SI) or (R) = 4%

And, Time (t) = 9 years

Thus, Amount (A)

= $5950 + ($5950 × 4% × 9)

= $5950 + ($5950 ×4/100 × 9)

= $5950 + (5950 × 4 × 9/100)

= $5950 + (23800 × 9/100)

= $5950 + (214200/100)

= $5950 + $2142 = $8092

Thus, Amount (A) to be paid = $8092 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 $5950, the simple interest in 1 year

= 4/100 × 5950

= 4 × 5950/100

= 23800/100 = $238

Thus, simple interest for 1 year = $238

Therefore, simple interest for 9 years

= Simple interest for 1 year × 9

= $238 × 9 = $2142

Thus, Simple Interest (SI) = $2142

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5950 + $2142

= $8092

Thus, Amount to be paid = $8092 Answer


Similar Questions

(1) Donald had to pay $4905 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(2) If Robert borrowed $3100 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.

(3) Elizabeth had to pay $3864 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.

(4) Robert took a loan of $4200 at the rate of 6% simple interest per annum. If he paid an amount of $5712 to clear the loan, then find the time period of the loan.

(5) What amount does Jessica have to pay after 6 years if he takes a loan of $3750 at 10% simple interest?

(6) Lisa took a loan of $6100 at the rate of 8% simple interest per annum. If he paid an amount of $10004 to clear the loan, then find the time period of the loan.

(7) If Kenneth paid $5800 to settle his loan which he had taken 4 years before at a simple interest of 4%, then find the loan taken.

(8) Calculate the amount due if Joseph borrowed a sum of $3700 at 7% simple interest for 4 years.

(9) Matthew took a loan of $6400 at the rate of 8% simple interest per annum. If he paid an amount of $9984 to clear the loan, then find the time period of the loan.

(10) Susan took a loan of $5300 at the rate of 8% simple interest per annum. If he paid an amount of $8692 to clear the loan, then find the time period of the loan.


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