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) How much loan did Sarah borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7312.5 to clear it?
(2) Joseph took a loan of $5400 at the rate of 7% simple interest per annum. If he paid an amount of $9180 to clear the loan, then find the time period of the loan.
(3) What amount will be due after 2 years if Christopher borrowed a sum of $3500 at a 6% simple interest?
(4) Calculate the amount due if David borrowed a sum of $3400 at 8% simple interest for 3 years.
(5) Mary took a loan of $4100 at the rate of 9% simple interest per annum. If he paid an amount of $6314 to clear the loan, then find the time period of the loan.
(6) How much loan did Lisa borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $7260 to clear it?
(7) If Lisa paid $4374 to settle his loan which he had taken 4 years before at a simple interest of 2%, then find the loan taken.
(8) If Sarah borrowed $3850 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(9) Margaret took a loan of $6700 at the rate of 8% simple interest per annum. If he paid an amount of $10988 to clear the loan, then find the time period of the loan.
(10) How much loan did Robert borrow 5 years ago at a rate of simple interest 3% per annum, if he paid $5865 to clear it?