Question:
( 1 of 10 ) Calculate the amount due after 9 years if Robert borrowed a sum of $5100 at a rate of 5% simple interest.
(A) 59
(B) 30.5
(C) 61
(D) 60
You selected
$5100
Correct Answer
$7395
Solution And Explanation
Solution
Given,
Principal (P) = $5100
Rate of Simple Interest (SI) = 5%
Time (t) = 9 years
Thus, Amount (A) = ?
The Rate of Interest is always calculated per annum, i.e. per year.
Thus, here 5% simple interest means, Rate of Simple Interest (SI) is 5% 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) = $5100 × 5% × 9
= $5100 ×5/100 × 9
= 5100 × 5 × 9/100
= 25500 × 9/100
= 229500/100
= $2295
Thus, Simple Interest = $2295
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 = $5100 + $2295
= $7395
Thus, Amount to be paid = $7395 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 = $5100
Rate of Simple Interest (SI) or (R) = 5%
And, Time (t) = 9 years
Thus, Amount (A)
= $5100 + ($5100 × 5% × 9)
= $5100 + ($5100 ×5/100 × 9)
= $5100 + (5100 × 5 × 9/100)
= $5100 + (25500 × 9/100)
= $5100 + (229500/100)
= $5100 + $2295 = $7395
Thus, Amount (A) to be paid = $7395 Answer
Method (3) Unitary Method
Calculation of Amount using Unitary Method
Calculation of Interest using Unitary Method
Here, given Rate of Simple Interest = 5%
This, means, $5 per $100 per year
∵ For $100, the simple interest for 1 year = $5
∴ For $1, the simple interest for 1 year = 5/100
∴ For $5100, the simple interest in 1 year
= 5/100 × 5100
= 5 × 5100/100
= 25500/100 = $255
Thus, simple interest for 1 year = $255
Therefore, simple interest for 9 years
= Simple interest for 1 year × 9
= $255 × 9 = $2295
Thus, Simple Interest (SI) = $2295
Calculation of Amount
Amount = Principal + Interest
Thus, Amount = $5100 + $2295
= $7395
Thus, Amount to be paid = $7395 Answer
Similar Questions
(1) Calculate the amount due if Barbara borrowed a sum of $3550 at 9% simple interest for 4 years.
(2) Mary took a loan of $4100 at the rate of 6% simple interest per annum. If he paid an amount of $5822 to clear the loan, then find the time period of the loan.
(3) Karen took a loan of $5900 at the rate of 9% simple interest per annum. If he paid an amount of $9617 to clear the loan, then find the time period of the loan.
(4) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 6% simple interest for 4 years.
(5) What amount will be due after 2 years if Steven borrowed a sum of $3800 at a 6% simple interest?
(6) Find the amount to be paid if Karen borrowed a sum of $5950 at 7% simple interest for 8 years.
(7) Linda took a loan of $4700 at the rate of 7% simple interest per annum. If he paid an amount of $6674 to clear the loan, then find the time period of the loan.
(8) James took a loan of $4000 at the rate of 6% simple interest per annum. If he paid an amount of $5440 to clear the loan, then find the time period of the loan.
(9) Christopher had to pay $4240 in order to furnish the loan taken 3 years before. If the rate of simple interest was 2% then find the sum borrowed.
(10) Jennifer took a loan of $4500 at the rate of 7% simple interest per annum. If he paid an amount of $7335 to clear the loan, then find the time period of the loan.