Question:
Calculate the amount due after 9 years if Christopher borrowed a sum of $6000 at a rate of 4% simple interest.
Correct Answer
$8160
Solution And Explanation
Solution
Given,
Principal (P) = $6000
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) = $6000 × 4% × 9
= $6000 ×4/100 × 9
= 6000 × 4 × 9/100
= 24000 × 9/100
= 216000/100
= $2160
Thus, Simple Interest = $2160
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 = $6000 + $2160
= $8160
Thus, Amount to be paid = $8160 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 = $6000
Rate of Simple Interest (SI) or (R) = 4%
And, Time (t) = 9 years
Thus, Amount (A)
= $6000 + ($6000 × 4% × 9)
= $6000 + ($6000 ×4/100 × 9)
= $6000 + (6000 × 4 × 9/100)
= $6000 + (24000 × 9/100)
= $6000 + (216000/100)
= $6000 + $2160 = $8160
Thus, Amount (A) to be paid = $8160 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 $6000, the simple interest in 1 year
= 4/100 × 6000
= 4 × 6000/100
= 24000/100 = $240
Thus, simple interest for 1 year = $240
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $240 × 9 = $2160
Thus, Simple Interest (SI) = $2160
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $6000 + $2160
= $8160
Thus, Amount to be paid = $8160 Answer
Similar Questions
(1) James took a loan of $4000 at the rate of 10% simple interest per annum. If he paid an amount of $6400 to clear the loan, then find the time period of the loan.
(2) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 5% simple interest?
(3) What amount does John have to pay after 6 years if he takes a loan of $3200 at 2% simple interest?
(4) What amount does Sarah have to pay after 6 years if he takes a loan of $3850 at 8% simple interest?
(5) Thomas took a loan of $5600 at the rate of 7% simple interest per annum. If he paid an amount of $7952 to clear the loan, then find the time period of the loan.
(6) Kimberly had to pay $5068.5 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.
(7) 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?
(8) Calculate the amount due after 10 years if Barbara borrowed a sum of $5550 at a rate of 2% simple interest.
(9) Calculate the amount due if Thomas borrowed a sum of $3800 at 9% simple interest for 4 years.
(10) Joseph had to pay $4144 in order to furnish the loan taken 3 years before. If the rate of simple interest was 4% then find the sum borrowed.