Simple Interest
MCQs Math


Question:     Calculate the amount due after 9 years if Michael borrowed a sum of $5300 at a rate of 6% simple interest.


Correct Answer  $8162

Solution And Explanation

Solution

Given,

Principal (P) = $5300

Rate of Simple Interest (SI) = 6%

Time (t) = 9 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 6% simple interest means, Rate of Simple Interest (SI) is 6% 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) = $5300 × 6% × 9

= $5300 ×6/100 × 9

= 5300 × 6 × 9/100

= 31800 × 9/100

= 286200/100

= $2862

Thus, Simple Interest = $2862

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 = $5300 + $2862

= $8162

Thus, Amount to be paid = $8162 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 = $5300

Rate of Simple Interest (SI) or (R) = 6%

And, Time (t) = 9 years

Thus, Amount (A)

= $5300 + ($5300 × 6% × 9)

= $5300 + ($5300 ×6/100 × 9)

= $5300 + (5300 × 6 × 9/100)

= $5300 + (31800 × 9/100)

= $5300 + (286200/100)

= $5300 + $2862 = $8162

Thus, Amount (A) to be paid = $8162 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 6%

This, means, $6 per $100 per year

∵ For $100, the simple interest for 1 year = $6

∴ For $1, the simple interest for 1 year = 6/100

∴ For $5300, the simple interest in 1 year

= 6/100 × 5300

= 6 × 5300/100

= 31800/100 = $318

Thus, simple interest for 1 year = $318

Therefore, simple interest for 9 years

= Simple interest for 1 year × 9

= $318 × 9 = $2862

Thus, Simple Interest (SI) = $2862

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $5300 + $2862

= $8162

Thus, Amount to be paid = $8162 Answer


Similar Questions

(1) Margaret took a loan of $6700 at the rate of 7% simple interest per annum. If he paid an amount of $11390 to clear the loan, then find the time period of the loan.

(2) Find the amount to be paid if Sarah borrowed a sum of $5850 at 7% simple interest for 8 years.

(3) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 5% simple interest for 3 years.

(4) Calculate the amount due if Christopher borrowed a sum of $4000 at 4% simple interest for 3 years.

(5) Calculate the amount due after 10 years if Sarah borrowed a sum of $5850 at a rate of 2% simple interest.

(6) John took a loan of $4400 at the rate of 8% simple interest per annum. If he paid an amount of $7216 to clear the loan, then find the time period of the loan.

(7) How much loan did Jennifer borrow 5 years ago at a rate of simple interest 2% per annum, if he paid $5775 to clear it?

(8) Calculate the amount due if David borrowed a sum of $3400 at 9% simple interest for 3 years.

(9) Calculate the amount due after 9 years if David borrowed a sum of $5400 at a rate of 4% simple interest.

(10) What amount does David have to pay after 6 years if he takes a loan of $3400 at 4% simple interest?


NCERT Solution and CBSE Notes for class twelve, eleventh, tenth, ninth, seventh, sixth, fifth, fourth and General Math for competitive Exams. ©